Bitcoin price will remain at these levels until August – Arthur Hayes

• Arthur Hayes predicts a slow upward trend for Bitcoin after reaching a local bottom
• Bitcoin’s value will stabilize between $60,000 and $70,000 through August, he added.

The past few weeks have been difficult for the cryptocurrency market, marked by a sharp decline in the value of Bitcoin. Since its March high of $73,000, Bitcoin has fallen more than 19%, with a notable 7.8% drop in the last week alone. The sharp decline has investors and market watchers looking for signs of stability and possible paths to recovery.

The manager thinks: is a change in direction expected?

However, Arthur Hayes, former CEO of BitMEX, shared a ray of hope amid market volatility. in his last

Blog PostThe executive suggested that Bitcoin had reached a local bottom, while predicting a gradual upward movement in the coming months.

This outlook contrasts with the prevailing market sentiment, which has been largely bearish due to various economic factors. These include uncertainty regarding Federal Reserve policy and a general slowdown in cryptocurrency investment.

Hayes believes the recent 12% decline in Bitcoin’s price was necessary for the market correction, attributing it to the US tax season, which often prompts investors to liquidate their holdings to cover their tax liabilities. Additionally, he noted the news selling effect that has existed since the last Bitcoin halving and the slowdown in the growth of assets under management in spot Bitcoin ETFs.

Market Mechanics: Liquidity and Future Forecasts

One of the most intriguing aspects of Hayes’ analysis is his discussion of the implications of the Federal Reserve’s quantitative tightening (QT) strategy. He believes that a reduction in QT could lead to increased liquidity in financial markets, potentially benefiting riskier assets such as cryptocurrencies.

In fact, he described the process as a form of “hidden money printing” that could boost asset prices, leading to a sustained recovery phase.

Moreover, Hayes is optimistic about the market’s ability to accept these changes and begin to grow slowly. It assumes a scenario in which the market stabilizes and then begins to gradually rise, softening the sharper price movements seen recently. Regarding the price forecast, Hayes noted:

“Rally above $60,000 and then price action in the $60,000 to $70,000 range through August.”

It’s worth noting here that over the past 24 hours, Bitcoin has been showing signs of supposed “slow growth” on the charts. While BTC hit a 24-hour high of $59,966, trading volume also topped $30 billion, according to CoinGecko.

Melker thinks differently.

However, despite these positive forecasts, some analysts are more cautious. According to Scott Melker, for example, because Bitcoin has broke critical support levels, which is now acting as resistance, this could lead to further price declines. In fact, he believes a possible free fall to around $52,000 is out of the question.

Melker further stated that the recent decline is relatively minor, amounting to only 23%, and is largely consistent with previous corrections seen during this cycle. At this stage of the market, there is likely to be a larger correction of 30-40%, he added.

This is an automatic translation of our English version.