BitMEX co-founder and prominent crypto investor Arthur Hayes has closed his Bitcoin (BTC) short position.
BitMEX co-founder and prominent crypto investor Arthur Hayes has closed his Bitcoin (BTC) short position. Hayes had previously warned of a possible deep correction below $50,000 over the weekend, but now appears to be anticipating a rally as soon as next week.
Hayes stated on X that he had made a 3% profit, enough to cover his expenses during Korea Blockchain Week (KBW). More importantly, he hinted at a possible Bitcoin price surge in the coming week, citing potential increased U.S. dollar liquidity from the Federal Reserve as a catalyst.
The former BitMEX CEO’s change in outlook stems from his observation of Treasury Secretary Janet Yellen's close monitoring of the markets. Hayes suggests that if economic weakness persists, the Fed might be prompted to inject more liquidity into the system. This action could significantly boost investor sentiment in the cryptocurrency market, particularly for Bitcoin.
Hayes's prediction aligns with the views of other market analysts who see a correlation between Bitcoin's performance and changes in the M2 money supply. Jamie Coutts, chief crypto analyst at Real Vision, has previously highlighted the importance of M2 momentum in Bitcoin bull cycles. The recent positive turn in year-over-year M2 growth could signal that investors may soon seek inflation hedges like Bitcoin.
Despite the current market downturn, some analysts argue that Bitcoin's September correction is in line with historical halving cycle patterns. September has traditionally been a bearish month for Bitcoin, with average returns of -4.69% according to CoinGlass data.
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