Former Bitmex CEO Predicts Bitcoin Support Level
Arthur Hayes, the former CEO of Bitmex, has made a prediction about the price of bitcoin. He believes that the cryptocurrency will find support between $30,000 and $35,000. In a recent blog post, Hayes explained his reasoning:
I think bitcoin will find a local bottom between $30,000 and $35,000.
Hayes also noted that he expects a 30% correction for bitcoin, based on the high of $48,000 reached after the approval of bitcoin exchange-traded funds (ETFs). He further stated that the price drop could be even more severe if the newly listed spot bitcoin ETFs have already started trading.
The recent drop in bitcoin’s price following the launch of the ETFs has been attributed to the outflows from the Grayscale Bitcoin Trust (GBTC). However, Hayes dismissed this argument, stating that when you take into account the outflows from GBTC and the inflows into the spot bitcoin ETFs, there is still a net inflow of $820 million.
Bitcoin’s Anticipation of Bank Term Funding Program Renewal
According to Hayes, the second argument for bitcoin’s price drop is its anticipation of the non-renewal of the Bank Term Funding Program (BTFP). He explained that this event would not be positive for bitcoin, as the Federal Reserve has yet to cut rates to a level that would push the 10-year Treasury into the 2% to 3% range.
The Federal Reserve Board recently announced that the Bank Term Funding Program will cease making new loans on March 11. Hayes expects bitcoin to dip before the decision on the program’s renewal on March 12. He believes that as the stock market faces a crisis in March, bitcoin will rise as it anticipates the actions of the Federal Reserve.
Hot Take: Arthur Hayes’ Bitcoin Price Prediction
Arthur Hayes, the former CEO of Bitmex, predicts a support level between $30,000 and $35,000 for bitcoin. He dismisses the idea that the recent selloff is due to outflows from the Grayscale Bitcoin Trust (GBTC) and instead believes that bitcoin is anticipating the non-renewal of the Bank Term Funding Program (BTFP). Hayes expects bitcoin to dip before the program’s renewal deadline on March 12, and suggests that it will rise as it front-runs the actions of the Federal Reserve. With ongoing uncertainties in the market, it remains to be seen how accurate Hayes’ prediction will turn out to be.
By
By
By
By
By