BitMEX Co-Founder Forecasts Crypto Market Downturn Post Bitcoin Halving
Arthur Hayes, co-founder of BitMEX, anticipates a downturn in the crypto market following April's Bitcoin halving, attributing it to a combination of factors including policies from the United States Federal Reserve and Department of the Treasury.
In a blog post on April 8, Hayes expressed his belief that while the halving might eventually boost prices, immediate fluctuations could lean negative due to prevailing market sentiment.
Hayes posited that the timing of the halving coincides with tightened dollar liquidity, influenced by Federal Reserve and Treasury actions, potentially leading to a significant decline in crypto asset prices. He cautioned against the widely held belief in a positive halving narrative, suggesting that consensus often precedes contrary outcomes in financial markets.
Highlighting the precarious nature of the market, Hayes pointed to the period following May 1 as particularly uncertain, citing U.S. tax payments and the Federal Reserve’s initiation of Quantitative Tightening (QT) as potential stressors.
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He predicted that after the Fed’s meeting, monetary policy might ease slightly, accompanied by the release of substantial liquidity by the Treasury, likely bolstering markets.
Given the anticipated market volatility, Hayes announced his decision to refrain from trading until May, emphasizing the need for caution amidst the complex interplay of factors. Despite Bitcoin’s robust performance year-to-date and prevailing market optimism, Hayes urged prudence and risk aversion in the face of potential fluctuations.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
