In the medium term, halving is a bullish catalyst for the crypto market. But immediately before and after the event, prices may fall, says ex-CEO of BitMEX Arthur Hayes.
“Heatwave” is an essay on why I'm bearish despite the recent move higher in #crypto markets.https://t.co/gZ8Vl1uC04 pic.twitter.com/fH6docB499
— Arthur Hayes (@CryptoHayes) April 9, 2024
He noted that in the second half of April the market will face a reduction in dollar liquidity. Reasons will be tax season, politics Fed on quantitative tightening (QT) and strengthening the balance sheet of the Ministry of Finance.
This factor will be an additional incentive for “a furious sell-off in cryptocurrencies,” Hayes believes.
According to the expert, after May 1, the Fed will reduce the QT rate, and the Ministry of Finance will release “most likely an additional $1 trillion of liquidity into the system, which will pump up the markets.”
Hayes added that the “bag of tricks” from regulators only strengthened his decision to refrain from trading Bitcoin until the above date.
He reported that he “took full profit” on positions in MEW, SOL and NMT, which he invested in USDe from Ethena for staking.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
