BitMEX CEO Arthur Hayes Predicts a Drop in BTC Price After Bitcoin Halving
BitMEX CEO Arthur Hayes shared his thoughts on the current state of the economy, quantitative tightening measures, and Bitcoin price performance around the Bitcoin halving event in a recent blog post. On Monday, April 8, BTC price made a surprise move up to $72,000 and continues to show strength. However, the real question is whether BTC can hold around ATH as Bitcoin approaches its halving.
Bitcoin Price Volatility Around the Halving Event
In a recent forecast, Arthur Hayes predicts a drop in Bitcoin prices before and after the halving event. He suggests that US dollar liquidity will be restricted during this period, which will contribute to increased selling pressure on crypto assets. However, Hayes predicts that after May 1, the quantitative tightening (QT) cycle will ease and return to the standard rhythm in line with US inflation trends. Hayes wrote:
In an analysis shared by crypto expert Rekt Capital, Bitcoin appears to be slowly moving from the Pre-Hallowing Withdrawal phase to the “Reaccumulation” phase. The aim now is for Bitcoin to continue moving sideways until and after the Halving event.
Typically, the reaccumulation phase can last from a few weeks to 150 days, corresponding to approximately 5 months. At this stage, many investors may be unsettled due to boredom, impatience and disappointment in not seeing immediate significant results from their Bitcoin investments after the Halving. However, it is noteworthy that in this particular cycle, the reaccumulation range formed around the new all-time high for the first time.
Kindness: Rect Capital
All Eyes on Fed Interest Rate Cuts
Ahead of this week, the crypto market expects two important events; March CPI data and FOMC meeting. All eyes will be on how the Fed plans to cut interest rates.
Galaxy Digital CEO Mike Novogratz stated in his statement that he believes that the Federal Reserve may still choose to reduce interest rates even though there are no compelling reasons. Novogratz sees this potential move as a positive scenario for assets such as Bitcoin ($BTC), gold, silver and copper.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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