Arthur Hayes Predicts a Choppy 2024 for Crypto Market Amid ETF Launch
Arthur Hayes, the founder and former CEO of BitMEX, believes that the crypto market will experience a “choppy” 2024 as traditional finance fully embraces Bitcoin through the launch of exchange-traded funds (ETFs). In a recent blog post, Hayes stated that despite market turbulence, he expects the entire crypto complex to reach or exceed an all-time high by the end of the year.
A Choppy Year Ahead
Hayes predicts that the price action in 2024 will be volatile. He advises market participants not to be discouraged by Bitcoin’s performance since the introduction of spot Bitcoin ETF listings last week. According to Hayes, central bankers and governments worldwide are creating conditions for increased money supply, which will drive another leg of the bull run. Lawmakers may also leverage fears of a financial crisis to stimulate investment.
Inflation to Benefit ETF Markets
Hayes believes that the ETF space will only thrive if inflation continues. He argues that ongoing global economic and military changes are unraveling post-World War 2 arrangements, leading to inflationary pressures. This will create ample trading volumes for ETFs and attractive arbitrage opportunities. Hayes emphasizes that Bitcoin’s inclusion in traditional financial markets will result in a rise in its fiat value.
Hayes Exercises Caution in Portfolio Risk
Hayes reveals that he has chosen to wait until mid-March before adding any risk to his portfolio. He plans to assess the outcome of Fed rate decisions and take into account the upcoming Bitcoin halving event.
Hot Take: A Bullish Outlook Despite Volatility
Despite predicting a choppy year for the crypto market, Arthur Hayes remains optimistic about Bitcoin’s future. He believes that the financialization of Bitcoin through ETFs will contribute to its long-term growth and that the bull market is just beginning. Hayes encourages investors to stay resilient and not be discouraged by short-term price fluctuations.
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