Arturo Hayesco-founder and former CEO of BitMEX, recently shared his thoughts on the bitcoin-crash-below-57000/” target=”_blank” rel=”nofollow”>current bitcoin price action. He claimed that the flagship cryptocurrency has hit a local low and predicted what its future trajectory will be like.
Hayes says bitcoin has hit bottom
In a recent blog post, Hayes mentioned that bitcoin hit a local low when it fell to about $58,600 earlier this week. As such, he does not foresee the flagship cryptocurrency falling below that price range again anytime soon.
Instead, he predicts bitcoin will rebound above $60,000 (which it already did) and “then price action in a limited range between $60,000 and $70,000 through August.”
Hayes also suggested that bitcoin's recent drop was due to several factors, including the Federal Reserve's rate decision, the bitcoin-bull-market-glassnode/” target=”_blank” rel=”nofollow”>Halving bitcoin news selling event and slowing demand for US spot bitcoin ETFs
He also took the opportunity to address recent policy announcements from the Fed and Treasury, which he believes will have a significant impact on cryptocurrencies.
Hayes said those announcements meant the government would likely resort to money printing soon. He believes that the possible injection of liquidity into the US economy will “curb the negative price movement” in the cryptocurrency market. As such, he expects prices to “bottom out, taper off and slowly start to rise.”
Hayes' projections are similar to those of the crypto expert bitcoin-bottom-20-decline/” target=”_blank” rel=”nofollow”>michael van de poppeWHO recently predicted that bitcoin will probably consolidate for a few months. Interestingly, Van de Poppe also alluded to the Federal Reserve's recent policies, noting that quantitative easing is near, which would be bullish for bitcoin.
However, Hayes was concerned about the long-term effects of the recent monetary announcements, noting that they were inflationary in nature.
Therefore, although more money is expected to flow into the crypto market with the Fed's decision, it could cause bitcoin-inflation-rate-battle-gold-scarcest-asset/” target=”_blank” rel=”nofollow”>inflation to soar. This would eventually lead to higher interest rates, which would negatively affect risk assets like bitcoin.
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bitcoin is now trading at $63.160. Chart: TradingView
Arthur Hayes' business strategy in the future
MEXC co-founder said he would buy solarium and “dog coins for momentum trading positions.” For long-term “shitty positions”, he mentioned that he would increase his allocations by Earring while identifying other tokens that it considers undervalued. Basically, you plan to use this month to increase your exposure.
Once this was done, he commented that he would wait for the market to “appreciate the inflationary nature of the recent crypto-markets/” target=”_blank” rel=”nofollow”>US monetary policy advertisements”.
Meanwhile, as to what dog coins Hayes might be stocking up on, Dogwifhat (WIF) is probably one of them, considering he once bitcoin-fall-30-top-2-altcoins/” target=”_blank” rel=”nofollow”>mentioned which would load WIF when bitcoin hit bottom.
Featured image from Pexels, chart from TradingView
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