Bitcoin To Face 'Raging Firesale' Near Halving, Arthur Hayes Cautions Crypto Traders
Portfolio Pulse from Benzinga Neuro
Arthur Hayes, BitMEX co-founder, predicts a significant crypto asset firesale around the Bitcoin halving, influenced by the Federal Reserve's strategies. He anticipates a volatile period in late April, with potential market depression due to tighter dollar liquidity. Despite this, Hayes sees a possible market pump after the Fed's meeting on May 1, with the Treasury likely adding $1 trillion of liquidity. Bitcoin has seen a substantial year-to-date increase, trading at $71,122.10, despite a slight decrease over the last 24 hours.
April 09, 2024 | 4:17 am
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Arthur Hayes predicts a volatile period for Bitcoin around its halving, influenced by Federal Reserve strategies, potentially leading to a short-term market depression. However, a market pump is expected after the Fed's meeting on May 1.
Hayes' prediction of a firesale and subsequent market pump around the Bitcoin halving is based on the timing of the Federal Reserve's strategies and the Treasury's liquidity actions. Given Bitcoin's significant year-to-date increase, these events could lead to short-term volatility but potentially stabilize or increase Bitcoin's value post-May 1.
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