Bitcoin’s 12% pullback in recent days has become a “necessary cleansing of the market,” the price will overcome $60,000 and will not consolidate above 70,000 until the end of August, said ex-CEO of BitMEX Arthur Hayes.
“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.
The Hat Stays On!https://t.co/XmBpQqzBx9 pic.twitter.com/1SkIqZm5xk
— Arthur Hayes (@CryptoHayes) May 2, 2024
The expert noted that the dynamics in April corresponded to his expectations. Previously, Hayes allowed Bitcoin to fall after the halving, which took place on April 20.
The specialist cited the fixation of profits based on the fact that awards were halved as the reasons for the deterioration of market conditions. Others include US tax season, worries about decisions Fed and slowing inflows into ETFs.
According to Hayes, a return to the growth trajectory will be possible thanks to increased dollar liquidity.
The latter will be due to the combination:
- a decrease in the pace of bond sales by the Federal Reserve;
- payments by the Central Bank on balances on bank reserves and on reverse repo transactions;
- interest income on U.S. Treasury securities.
Reducing QT monthly from $95 billion to $60 billion, the Fed is effectively injecting more liquidity into the markets ($35 billion), which could theoretically end up in riskier assets like Bitcoin. The specialist called it a “hidden printing press.”
Hayes concluded by noting that the market will spend the summer assessing the impact of recent US monetary policy announcements on inflation.
Vailshire Capital Management founder and CEO Jeff Ross spoke in a similar vein. In his opinion, the Fed's “rhetorical turn” was an official transition from “bad to less bad liquidity conditions.”
Lot's of #bitcoin doom and gloom out there again today.
You do you, but I'm still respecting the ongoing bullcrab market.
The FOMC rhetorical pivot yesterday (which begins on June 1st) was the official transition from bad-to-less-bad liquidity conditions, IMHO.
As an aside,… pic.twitter.com/2HY0nWuW43
—Dr. Jeff Ross (@VailshireCap) May 2, 2024
Source: Cryptocurrency

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