Cryptocurrency Rebound Predicted by Former BitMEX CEO

Crypto expert Arthur Hayes anticipates a Bitcoin upswing after its recent decline. Hayes attributes the market downturn to factors like the US tax season and uncertainty over the Fed's actions but views the sell-offs as necessary for market cleansing. He predicts a surge driven by increased dollar liquidity due to Federal Reserve's quantitative tightening and the US Treasury's debt issuance plan, which would stabilize negative price movements and facilitate Bitcoin's gradual ascent.

Cryptocurrency Market Poised for Rebound, Predicts Former BitMEX CEO

Jakarta, 7th May 2022 - The cryptocurrency market has once again been presented with significant predictions from Arthur Hayes, one of the leading experts in the field. Hayes, the founder and former CEO of the BitMEX crypto exchange, shared his insights on the future price movement of Bitcoin (BTC) in a blog post published on Friday.

Hayes, renowned for his astute analysis, believes that Bitcoin may have bottomed out and is poised to resume its upward trajectory in the coming days. He attributes the recent market downturn to a combination of factors, including the United States tax season, uncertainty surrounding Federal Reserve actions, and "sell-the-news" events related to Bitcoin's halving.

"Everything that happens is just a much-needed 'market cleaning'," Hayes wrote in his blog post.

The former BitMEX chief believes that after the recent capitulation of sellers, it is the turn of the cryptocurrency market to rally. He envisions a surge driven by two key factors: an increase in dollar liquidity and a decrease in quantitative easing.

According to Hayes' analysis, the Federal Reserve's quantitative tightening (QT) and the U.S. Treasury Department's debt issuance plan will result in an increase in dollar liquidity. This liquidity is expected to flow into risky assets such as cryptocurrencies, creating buying pressure and fueling price increases.

Hayes highlights that the Fed's reduction in QT from $95 billion to $60 billion per month will inject $35 billion of dollar liquidity into the market each month. He believes this will arrest the downward price action and pave the way for Bitcoin's gradual but sustained upward movement.

Hayes' optimistic outlook is not an isolated view. Dr. Jeff Ross, founder and CEO of Vailshire Capital Management, also believes that Bitcoin's bull run may not have run its course. In a social media post on May 2, Ross argued that analysts may be underestimating the potential for Bitcoin's bullish momentum to continue.

However, it is important to note that Bitcoin's price has not yet shown any significant signs of recovery. According to Coinecko data, Bitcoin has risen by 2.9% over the past 24 hours, trading at $59,279 (approximately IDR 890 million). Despite this uptick, it remains around 10% below its value a month ago.