BitMEX CEO Arthur Hayes Predicts BTC Price Slump After Bitcoin Halving
Highlights
- Bitcoin price to face major slump in and around the halving event says Hayes.
- Bitcoin is currently in the re-accumulation phase happening around its ATH levels.
- Fed's quantitative tightening and delay in rate cuts remains a going concern.
BitMEX CEO Arthur Hayes has shared his thoughts in a recent blog post regarding the current state of the economy, the quantitative tightening measures, as well as the Bitcoin price performance around the Bitcoin halving event. On Monday, April 8, the BTC price gave a surprise move all the way to $72,000 and continues to show strength. However, the bigger question is whether BTC will be able to hold around the ATH as we approach the Bitcoin halving.
Bitcoin Price Volatility Around Halving Event
In a recent forecast, Arthur Hayes anticipates a decline in Bitcoin prices both prior to and following the halving event. He suggests that during this period, US dollar liquidity will be constrained, contributing to heightened selling pressure on crypto assets. However, Hayes predicts that after May 1st, the quantitative tightening (QT) cycle will ease, reverting to the standard rhythm in line with US inflation trends. Hayes wrote:
Bitcoin halving “is seen as a bullish catalyst for crypto markets. I agree that it will pump prices in the medium term; however, the price action directly before and after could be negative”.
In an analysis shared by crypto expert Rekt Capital, Bitcoin appears to be gradually shifting from its Pre-Halving Retrace phase to a “Re-Accumulation” phase. The objective now is for Bitcoin to maintain sideways movement leading up to and following the Halving event.
Typically, the re-accumulation phase can span several weeks to even up to 150 days, which translates to approximately 5 months. During this phase, many investors may become restless due to boredom, impatience, and disappointment stemming from the lack of immediate significant results in their Bitcoin investments post-Halving. However, it’s noteworthy that in this particular cycle, the re-accumulation Range is forming around the new all-time high territory for the first time.
Eyes on the Fed Rate Cuts
Ahead this week, the crypto market is awaiting two important events i.e. the March CPI data and the FOMC meeting. All eyes will be on how the Fed is planning to navigate the rate cuts decision.
In a statement, Galaxy Digital CEO Mike Novogratz expressed his belief that despite a lack of compelling reasons, the Federal Reserve might still opt to cut rates. Novogratz sees this potential move as a favorable scenario for assets like Bitcoin ($BTC), gold, silver, and copper.
Call me crazy but I don’t see one good reason for the fed to cut rates. Yet think they will. It’s a great set up for $BTC, gold, silver, copper. It’s not a great set up for the USA though. We need a politician who will cut spending dramatically!
Sound of silence…
— Mike Novogratz (@novogratz) April 8, 2024
- John Bollinger Sees ‘W’ Bottom Forming in Ethereum and Solana, Not Bitcoin
- Robert Kiyosaki Calls Bitcoin and Ethereum ‘Real Money,’ Urges Investors to Ditch ‘Fake’ Fiat
- ‘Sell Gold, Buy Bitcoin’: Expert Flags Major Market Bottom Signal
- Ripple Makes ‘Unusual’ $500M Transfer Amid $1 Billion XRP Treasury Plans
- ‘I’m Going Bonkers’: Dave Portnoy Says He’ll Buy XRP Again If It Dips Below This Level
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
- Bitcoin Price Prediction Amid Gold’s Parabolic Rally to Second-Largest Reserve Asset
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
