- Bitcoin may have hit a local bottom and is expected to recover gradually, according to experts including BitMEX founder Arthur Hayes.
- Hayes predicts an increase in liquidity in the economy next week due to Janet Yellen’s policies could drive a surge in bitcoin’s value.
- Hayes also suggests that bitcoin could see a period of range-bound price action between $60,000 and $70,000 until August.
Experts suggest that bitcoin may have hit a local bottom and predict a gradual recovery, with BitMEX founder Arthur Hayes anticipating a surge in value due to increased economic liquidity.
Bitcoin May Have Hit a Local Bottom
In a recent blog post, Hayes attributed bitcoin’s latest slump to factors such as the US tax season, uncertainty surrounding the Fed’s actions, the halving “sell the news” event, and a slowdown in the growth of assets under management (AUM) for the spot ETFs in the US. He sees these events as a necessary market cleansing. Hayes also noted that bitcoin hit a local low at around $56,500 earlier this week and expects a rally that could drive its price above $60,000 once again.
Sideways for Now?
Bitcoin surpassed $61,800 on Friday after gaining approximately 5% over the past 24 hours, showing signs of recovery from a midweek decline that pushed its price below $57,000. However, experts believe that the asset would trade sideways. Crypto analyst Kaleo noted that BTC’s sideways movement is typical following a halving event, mirroring patterns seen in previous cycles. Jeff Ross, Founder and CEO of Vailshire Capital Management, also maintained his bullish stance on bitcoin, seeing the upcoming weeks and months as a prime opportunity to accumulate BTC at lower prices as the cryptocurrency trades sideways.
Conclusion
Despite recent volatility, experts remain optimistic about bitcoin’s future performance. The predicted increase in economic liquidity and the typical post-halving sideways movement could provide opportunities for investors to accumulate more bitcoin. As the market continues to evolve, investors will be closely watching these developments.
