The price of Bitcoin will remain at these levels until August – Arthur Hayes

• Arthur Hayes Predicts Slow Uptrend for Bitcoin After Hitting Local Bottom
• The value of Bitcoin will stabilize between $60,000 and $70,000 until August, he added.

The last few weeks have been difficult for the cryptocurrency market, marked by a sharp drop in the value of Bitcoin. From a high of $73,000 in March, Bitcoin has fallen more than 19%, with a notable 7.8% drop in the last week alone. This steep drop has left investors and market observers searching for signs of stability and possible paths to recovery.

The executive thinks: Is a change of direction on the horizon?

However, Arthur Hayes, former CEO of BitMEX, has shared a ray of hope amid the market volatility. in the last one

blog postThe executive suggested that Bitcoin has hit a local bottom, while predicting a gradual upward move in the coming months.

This outlook contrasts with the prevailing sentiment in the market, which has been largely bearish due to various economic pressures. These include uncertainties over Federal Reserve policy and a general slowdown in cryptocurrency investments.

Hayes believes the recent 12% pullback in Bitcoin price was necessary for the market correction, attributing it to the US tax season, which often prompts investors to liquidate their holdings to cover their tax obligations. . Additionally, he pointed out the “selling the news” effect that has existed since the last Bitcoin halving and a slowdown in the growth of assets under management in spot Bitcoin ETFs.

Market mechanics: Liquidity and future projections

One of the most intriguing aspects of Hayes’ analysis is his discussion of the implications of the Federal Reserve’s quantitative tightening (QT) strategy. He believes that QT tapering could lead to greater liquidity in financial markets, potentially benefiting riskier assets like cryptocurrencies.

In fact, he described this process as a form of “stealth money printing” that could boost asset prices, leading to a sustained recovery phase.

Furthermore, Hayes is optimistic about the market’s ability to absorb these changes and begin a slow climb. He envisions a scenario in which the market will stabilize and then begin a gradual climb, mitigating the more drastic price movements seen recently. In regards to his price prediction, Hayes noted,

“A rally above $60,000 and then price action within a range between $60,000 and $70,000 through August.”

Here it is worth noting that over the past 24 hours, Bitcoin has shown signs of a supposed “slow rise” on the charts. While it hit a 24-hour high of $59,966, BTC also saw trading volume exceeding $30 billion, according to data from CoinGecko.

Melker believes otherwise.

However, despite these positive projections, some analysts are more cautious. According to Scott Melker, for example, because Bitcoin has broke crucial support levels, which now acts as resistance, this could lead to further price declines. In fact, he believes that a possible free fall to around $52,000 would not be out of the question.

Melker further stated that the recent drop is relatively minor, marking only a 23% drop and very much in line with previous corrections seen during this cycle. A more significant correction of 30% to 40% is likely to occur during this phase of the market, he added.

This is an automatic translation of our English version.