Bitcoin Recovers, Former CEO Of BitMEX Predicts A Slowly Increase In BTC
JAKARTA The crypto market was again presented with interesting predictions from one of the leading experts in its field. Arthur Hayes, founder and former CEO of the BitMEX crypto exchange, shared his thoughts on the Bitcoin (BTC) price movement in a blog post on Friday.
Hayes, known for its sharp analysis, believes that Bitcoin is likely to have reached its lowest point and is poised to restart its upward movement in the next few days. The recent decline in the market, according to him, is a natural thing and is triggered by factors such as the US tax season, uncertainty over Fed's actions, and "sell-the-news" events related to Bitcoin's halving.
"Everything that happens is just a much-needed'market cleaning'," Hayes wrote on his blog.
The former head of BitMEX believes that after recent massive sales, it's the crypto market's turn to rise. He predicts an increase that will be driven by two key factors, namely an increase in dollar liquidity and a decrease in quantitative levels.
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Hayes argued that a quantitative reduction (QT) by the Federal Reserve and the US Treasury Department's debt issuance plan would increase dollar liquidity. This liquidity, theoretically, will flow to risky assets such as cryptocurrencies, creating buying pressure and driving price increases.
Hayes stressed that a reduction in QT Fed from 95 billion to USD 60 billion per month would add USD 35 billion in dollar liquidity per month. This, according to him, will stabilize negative price movements and pave the way for Bitcoin's slow but stable rise.
Optimistic view of Hayes isn't the only one. Dr. Jeff Ross, founder and CEO of Vailshire Capital Management, also believes that Bitcoin's bull run may not have started yet. In a social media post on May 2, Ross argued that analysts might be surprised by the fact that the Bitcoin bullish market still has the potential to thrive.
Interestingly, the price of Bitcoin showed little recovery today. Coinecko data shows Bitcoin has increased 2.9% in the last 24 hours and is trading at 59,279 US dollars (approximately IDR 890 million). However, this asset is still down 10% from last month.