bitcoin-via-etfs/” rel=”nofollow”>author hayesco-founder and former chief executive officer (CEO) of cryptocurrency exchange and trading platform, BitMEX has published another blog post, predicting a major fire sale and a possible price drop for bitcoin, the world's largest cryptocurrency.
bitcoin fire sale imminent
In its blog postHayes provided a detailed analysis, explaining his perspectives on how the bitcoin halving event would negatively impact affect the price of cryptocurrency.
The bitcoin Halving It is an event that occurs every four years and reduces bitcoin mining block rewards by half. This, in turn, decreases the amount of bitcoin created and leads to an increase in the value of the cryptocurrency.
While most analysts in the crypto market anticipate a bullish rally for bitcoin and other altcoins during the halving event, Hayes has a more contradictory view, suggesting that the halving period could initiate more bearish action than expected.
Hayes has acknowledged that the bitcoin price and other cryptocurrencies are likely to rise during the halving period, at least in the medium term. However, the BitMEX co-founder also predicted that bitcoin price action before and after the halving event could potentially turn negative.
He revealed that because bitcoin's halving in 2024 coincides with a period of diminished liquidity in the US dollar (USD), could potentially start a “furious fire sale of crypto assets.” The crypto founder also predicts the price of bitcoin and other cryptocurrencies plummeting around this time.
As a result, Hayes has advised the broader crypto community to refrain from trading cryptocurrencies during this period. He emphasized that when the majority of market participants agree on a specific outcome, such as a bitcoin halving-induced rally, the market tends to move in the opposite direction.
Despite his captivating predictions, Hayes admitted that the cryptocurrency market could challenge his bearish forecastsessentially recognizing the speculative nature of his prediction.
Hayes says April is the best time to short
In his blog post, Hayes revealed that the period between April 15 and May 1, 2024 would be precarious for risk assets in the financial sector. This is attributed to tax payments draining liquidity from the system and quantitative tightening (QT) that accelerated during this period.
The cryptocurrency founder has suggested that this period could present a prime short position for traders, indicating that April could be the ideal month to bitcoin-short-sellers-bet-against-crypto-stock/” rel=”nofollow”>Short sale. He predicts that after May 1, the market will return to its “regular schedule.”
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