- Arthur Hayes, co-founder and former CEO of BitMEX, has shared his thoughts on the current Bitcoin price action, predicting its future trajectory.
- Hayes suggests that Bitcoin has hit a local low and will not drop below this price range anytime soon, predicting a range-bound price action between $60,000 and $70,000 until August.
- He also touched on the recent Fed and Treasury policy announcements, which he believes will significantly impact crypto, and shared his trading strategy going forward.
Arthur Hayes, BitMEX co-founder, predicts Bitcoin’s future trajectory and shares his trading strategy amid recent Fed and Treasury policy announcements.
Hayes Says Bitcoin Has Bottomed
In a recent blog post, Hayes mentioned that Bitcoin hit a local low when it dropped to around $58,600 earlier this week. He doesn’t foresee the flagship crypto dropping below that price range again anytime soon. Instead, he predicts that Bitcoin will rally above $60,000 and “then range-bound price action between $60,000 and $70,000 until August.”
Factors Influencing Bitcoin’s Decline
Hayes suggested that Bitcoin’s recent decline was due to several factors, including the Fed rate decision, the Bitcoin halving sell-the-news event, and the slowdown in the demand for US Spot Bitcoin ETFs. He also used the opportunity to touch on the recent Fed and Treasury policy announcements, which he believes will significantly impact crypto. Hayes claimed these announcements meant the government would likely resort to money printing soon enough. He believes the potential injection of liquidity into the US economy will “dampen negative price movement” in the crypto market. As such, he expects that prices will “bottom, chop, and begin a slow grind higher.”
Arthur Hayes’ Trading Strategy Going Forward
The MEXC co-founder said he would buy Solana and “doggie coins for momentum trading positions.” For long-term “shitcoin positions,” he mentioned that he would increase his allocations in Pendle while identifying other tokens that he considers undervalued. Basically, he plans to use this month to increase his exposure. Once he had done that, he remarked that he would wait for the market to “appreciate the inflationary nature of the recent US monetary policy announcements.”
Conclusion
Hayes’ projections and trading strategy provide valuable insights for crypto investors. While he predicts a slow grind higher for Bitcoin, he also warns of the potential inflationary impact of recent US monetary policy announcements. As always, investors should conduct their own research and consider multiple perspectives when making investment decisions.
