Former BitMEX CEO Arthur Hayes is optimistic about the future of Bitcoin, stating that the cryptocurrency has hit a local bottom and will gradually rise over the next few months. In a blog post on May 3, Hayes discussed the recent market slump and expressed confidence in his predictions. Despite Bitcoin’s recent drop to around $58,600, Hayes believes that it will rally above $60,000 and then trade within a range of $60,000 to $70,000 until August. He described the 12% retreat as a necessary market cleansing, attributing it to factors such as the US tax season, concerns about Federal Reserve decisions, the Bitcoin halving event, and a slowdown in spot Bitcoin exchange-traded fund inflows. Hayes also noted that this correction is the fourth of its kind in the past year. He anticipates that the crypto market will gradually recover due to increased dollar liquidity resulting from the Federal Reserve’s quantitative tightening taper and the US Treasury’s debt issuance plans. This injection of liquidity could potentially benefit cryptocurrencies as investors turn to riskier assets. Hayes referred to this as “stealth money printing,” which he believes will have a positive impact on high-risk assets. He stated that the gradual addition of liquidity each month will mitigate negative price movements and that prices will eventually reach a bottom, stabilize, and slowly rise. Other experts, such as Jeff Ross, Founder and CEO of Vailshire Capital Management, share a similar view and expect a sideways market in the coming months. Ross considers the Fed’s “rhetoric pivot” as a transition to better liquidity conditions. MatrixPort, an institutional crypto brokerage, also supports this outlook, noting that Bitcoin tends to trade sideways for several months after halving events. Although Bitcoin prices have recovered slightly to $59,804 at the time of writing, the asset is still down 19% from its mid-March all-time high.
Arthur Hayes predicts Bitcoin's ascent to a gradual upturn after hitting rock bottom.