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Former BitMEX chief executive Arthur Hayes has expressed confidence in the future of Bitcoin (BTC), stating that he believes the cryptocurrency has hit a local bottom and will gradually rise over the coming months. 
In a<a href="https://blog.bitmex.com/mayday/"> blog post</a> on May 3, Hayes commented on the recent market downturn, stating, “The price action played out as I expected.”&nbsp; 
Despite<a href="https://thecoinrise.com/standard-chartered-bank-predicts-bitcoin-could-still-drop-to-50k/"> Bitcoin hitting a local low of around $58,600</a> earlier in the week, Hayes predicts that it will rally back above $60,000 and then stabilize in a range between $60,000 and $70,000 until August. 
<h2 id="span-style-font-weight-400-bitcoin-and-a-12-price-crash-span">Bitcoin and a 12% Price Crash</h2> 
Hayes attributed the recent 12% retreat in Bitcoin’s price to several factors, including the tax season in the United States, concerns over Federal Reserve decisions, the Bitcoin halving “sell the news event,” and a slowdown in the growth of assets under management for spot Bitcoin ETFs.&nbsp; 
This correction marked the fourth such retracement of similar magnitude over the past 12 months. 
<h3 id="span-style-font-weight-400-hayes-remains-optimistic-span">Hayes Remains Optimistic</h3> 
However, Hayes remains optimistic about the crypto market, expecting it to slowly rise following the recent sell-off. He believes this will be driven by increased dollar liquidity from the Federal Reserve’s quantitative tightening (QT) taper and the U.S. Treasury’s debt issuance plans.&nbsp; 
By tapering QT, the central bank is effectively injecting more liquidity into markets, potentially leading to<a href="https://thecoinrise.com/anthony-scaramucci-shares-insights-on-bitcoin-price-post-halving/"> increased buying pressure for riskier assets</a> like cryptocurrencies. 
Hayes views these actions as “stealth money printing,” which he sees as positive for high-risk assets. “The slow addition of billions of dollars of liquidity each month will dampen negative price movement from here on out,” he stated, predicting that prices will “bottom, chop, and begin a slow grind higher.” 
<h2 id="span-style-font-weight-400-bullcrab-market-span">‘Bullcrab Market’</h2> 
Dr. Jeff Ross, founder and CEO of Vailshire Capital Management, shares a similar sentiment, referring to the ongoing market as a “bullcrab market.”&nbsp; 
He noted that the Federal Reserve’s “rhetoric pivot” signals a transition from “bad-to-less-bad liquidity conditions.” Ross believes that analysts calling for the end of the Bitcoin bull market may be premature, suggesting that the actual bull market hasn’t even started yet. 
<h3 id="span-style-font-weight-400-bitcoin-moves-sideways-span">Bitcoin Moves Sideways</h3> 
Institutional crypto brokerage MatrixPort also reiterated its outlook, stating that historically, Bitcoin tends to move sideways for<a href="https://thecoinrise.com/peter-schiff-highlights-the-post-halving-flaws-of-bitcoin/"> four to five months post-halving</a>. 
Despite the recent downturn, Bitcoin prices recovered 4.2% on the day to trade at $59,804 at the time of writing, though still down 19% from the mid-March all-time high, according to<a href="https://www.coingecko.com/"> CoinGecko</a>. As the market continues to evolve, analysts and investors anticipate a period of accumulation before Bitcoin resumes its upward trajectory. 
The post <a href="https://thecoinrise.com/bitcoin-hits-bottom-higher-prices-to-follow-arthur-hayes/">Bitcoin Hits Bottom, Higher Prices to Follow: Arthur Hayes</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Bitcoin Hits Bottom, Higher Prices to Follow: Arthur Hayes

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