Arthur Hayes, an executive at BitMax, assumes that after touching its support level, Bitcoin is on its way to recovery. Bitcoin will reach a new high in upcoming months, Hayes explained. A 12% drop in the price was a “well-needed market cleansing,” said Hayes.
In a post on May 3, Hayes mentioned a recent market dump, saying, “The price action played out as I expected.”
According to his prediction, after touching the low ground at $58,600, now Bitcoin is making its way to $60,000. He said that till August, the price of Bitcoin will jump between $60,000 to $70,000.
He said that the drop in the price of Bitcoin is the outcome of the tax season in the United States, and concerns about Federal Reserve action. The news of the Halving event and the low sale of Bitcoin ETFs are also key factors in the price drop of Bitcoin.
The 23% drop in price is the fourth major price drop over the last 12 months.
“Mayday is a brief discussion on the recent Fed, US Treasury, the bank bailout policies. It’s money printing disguised. As such, I’m re-entering the market with super shitty shitcoins.” said Hayes on May 3, 2024
After the sell-off caused by the recent increase in dollar liquidity from the Federal Reserve‘s quantitative tightening (QT) and U.S. Treasury debt,. Bitcoin is showing an upward trend, as expected by Hayes.
By reducing QT, the Central Bank is now injecting more liquidity into the market. This will result in making its way to riskier assets like cryptocurrency, creating buying momentum.
“Are the recent Fed and Treasury policy announcements stealth forms of money printing? Yes.”
“The slow addition of billions of dollars of liquidity each month will dampen negative price movement from here on out,” he explained before predicting that the price will bottom, chop, and begin a slow grind higher.”
Dr. Jeff Ross, founder and CEO of Vailshire Capital Management, said he was “still respecting the ongoing bullcrab market,” in his post on X on May 2.
Traders and analysts are expecting the end of the market spike “may be dismayed to learn that the actual bull market hasn’t even started yet,” he stated before saying that the next few weeks will bring a great opportunity for traders.
In a note shared with Cointelegraph, institutional crypto brokerage MatrixPort talked about the post-Halving event. “Bitcoin tends to move sideways afterward for four to five months based on previous instances.”
At the time of writing, Bitcoin is trading at $59,235, showing a 4.2% price recovery. While comparing it to March, Bitcoin is still 19% down from it’s all-time high.
