Arthur Hayes Says Crypto Assets Face A “Raging Firesale” Around The Bitcoin Halving As Fed Uses “Bag of Tricks” To Bail Out Banks
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BitMEX co-founder Arthur Hayes mentioned Bitcoin and crypto costs might stoop across the time of the Bitcoin halving as US policymakers use a “bag of tricks” to bail out the monetary system.
The halving on Apr. 20 will even coincide with a interval of tight greenback liquidity with tax funds due from April 15 to Could 1, he mentioned in a blog post.
“Given that the halving occurs at a time when dollar liquidity is tighter than usual, it will add propellant to a raging firesale of crypto assets,” he mentioned. “April will experience extreme weakness in risky asset markets.”
“Heatwave” is an essay on why I am bearish regardless of the latest transfer greater in #crypto markets. pic.twitter.com/fH6docB499
— Arthur Hayes (@CryptoHayes) April 9, 2024
Bitcoin is again to buying and selling above $70K because the market anticipates the halving, which is lower than two weeks away. The Bitcoin Fear & Greed Index is at 80, displaying “extreme greed.”
Hayes mentioned the narrative of the Bitcoin halving being a bullish catalyst is “well-entrenched,” however added that previous tendencies present that when the market expects a sure final result, the alternative tends to occur.
Fed Insurance policies Will Drive Lengthy-Time period Positive factors
The Federal Reserve is surreptitiously printing cash “in order to bail out the financial system” and that would set off features for cryptocurrencies, gold, and shares in the long term, Hayes mentioned.
Whereas some insurance policies are slowing down liquidity within the brief time period and inflicting a bleed in threat property, in the long run the printing of cash might be a catalyst that enhances crypto costs, he mentioned.
Hayes mentioned he had determined to abstain from buying and selling till Could, when he anticipates the crypto bull market will resume.
“I hope to return in May with dry powder ready to deploy to position myself for the bull market to begin in earnest,” he mentioned.
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