Arthur Hayes: Bitcoin price will rise to $70,000 by the end of summer

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.

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.”

“Slowly adding billions of dollars of liquidity each month will curb negative price movements from here on out,” he explained.

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.”

“Traders calling for the end of the Bitcoin bull market may be disappointed to learn that in fact it has not even begun yet. I believe that the coming weeks and months are the last opportunity to buy cheap,” he commented.


Source: Cryptocurrency

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