Arthur Hayes, former CEO of BitMEX, has forecasted that Bitcoin has hit a local bottom, suggesting a slow and steady rise in the future.
In a recent blog post on May 3, Hayes discussed the recent market trends, indicating that the current price action is aligned with his expectations.
Hayes noted that Bitcoin hit a low of around $58,600 recently but projected a movement to above $60,000, followed by a period of fluctuation between $60,000 and $70,000 until August.
The recent 12% dip in Bitcoin's value was seen as a necessary correction by Hayes. He attributed this drop to various factors such as the U.S. tax season, uncertainties surrounding Federal Reserve policies, the Bitcoin halving "sell the news event," and a slowdown in spot Bitcoin ETF asset under management growth.
Hayes believes that the cryptocurrency market will see gradual growth post the recent sell-off, fueled by increased dollar liquidity from the Federal Reserve's quantitative tightening (QT) taper and the debt issuance strategies of the U.S. Treasury.
With the Federal Reserve's efforts to inject more liquidity into the market through QT tapering, Hayes suggests that this can potentially boost riskier assets like cryptocurrencies by creating buying pressure.
This so-called "stealth money printing" is viewed positively by Hayes for high-risk assets. He anticipates that the gradual injection of liquidity each month will help stabilize negative price movements, leading to a bottoming-out phase, followed by a slow upward trend.
Market experts like Dr. Jeff Ross from Vailshire Capital Management have also foreseen a sideways movement in the market for the upcoming months, terming it a "bullcrab market."
Moreover, institutional crypto brokerage MatrixPort has reiterated that historically, Bitcoin tends to move laterally for four to five months post-halving.
As of the latest data, Bitcoin's price has rebounded by 4.2% to reach $59,804 on the day. Nonetheless, the cryptocurrency remains down by 19% from its all-time high in mid-March.
