Crash

Bitcoin

Arthur

Flash

The price of Bitcoin experienced significant turbulence on Friday, plunging from $57,000 to just below $53,000 in a matter of hours. This rapid drop shook the market, with some investors, including prominent figures like BitMEX co-founder Arthur Hayes, seizing the opportunity to short the cryptocurrency. Hayes has <a href="https://x.com/CryptoHayes/status/1832623755756970138" rel="noopener noreferrer nofollow">predicted</a> a potential upward momentum in the days ahead.
<h2 id="span-style-font-weight-400-friday-s-flash-crash-span">Friday’s Flash Crash</h2>
<a href="https://thecoinrise.com/peter-schiff-and-peter-brandt-clash-over-price-action-bitcoin-turmoil/" rel="noopener noreferrer nofollow">Bitcoin’s sharp decline followed</a> the release of the U.S. August jobs report, which initially seemed like a positive trigger for the market. The report revealed a slight drop in unemployment rates, prompting a brief surge in Bitcoin’s value, spiking $1,500 to hit $57,000.
However, the optimism was short-lived, as bears took control and drove the price down by over $4,000, pushing the cryptocurrency to a monthly low of under $53,000.
Arthur Hayes, a well-known Bitcoin bull, saw this as an opportunity to open a short position, setting his sights on a further drop below $50,000 over the weekend. Given Bitcoin’s erratic price behavior, this move was not unexpected. However, Hayes closed his short position with a modest 3% profit, suggesting that Bitcoin’s price may rebound soon.&nbsp;
<h3 id="span-style-font-weight-400-yellen-s-speech-a-potential-catalyst-span">Yellen’s Speech: A Potential Catalyst?</h3>
Hayes cited an upcoming <a href="https://www.cnbc.com/2024/09/07/yellen-says-us-economy-remains-solid-heading-toward-soft-landing.html" rel="noopener noreferrer nofollow">speech</a> by the U.S. Treasury Secretary Janet Yellen as a possible reason for Bitcoin to rally. His decision to close his short position indicates that he believes market sentiment could shift, especially if Yellen’s speech has a significant impact on the economic outlook, monetary policy, or inflation.
With Bitcoin’s history of reacting strongly to macroeconomic events, Hayes opted to take profits early rather than risk a sudden price surge.
<h2 id="span-style-font-weight-400-hayes-long-term-belief-in-btc-span">Hayes’ Long-Term Belief in BTC</h2>
This isn’t the first time Hayes has made bold predictions about Bitcoin. In May, he <a href="https://thecoinrise.com/bitcoin-hits-bottom-higher-prices-to-follow-arthur-hayes/" rel="noopener noreferrer nofollow">expressed confidence that Bitcoin had reached a local bottom</a> and would see gradual growth. While that prediction initially seemed accurate, the market faced setbacks, including large-scale sell-offs by the German government and repayments from the Mt.Gox creditors.
<a href="https://thecoinrise.com/arthur-hayes-maelstrom-fund-launches-bitcoin-grant-program/" rel="noopener noreferrer nofollow">Hayes’ Maelstrom Fund also announced a new Bitcoin grant program</a> in July, aimed at supporting the development of Bitcoin’s technical infrastructure. The initiative highlights Hayes’ long-term belief in Bitcoin, even amid short-term volatility.
As of writing, Bitcoin is trading at around $54,500, down 6.5% over the past week. According to the <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">data</a> by CoinMarketCap, it currently boasts a market capitalization of $1.07 trillion.
The post <a href="https://thecoinrise.com/arthur-hayes-closes-bitcoin-short-predicts-possible-price-rebound/" rel="noopener noreferrer nofollow">Arthur Hayes Closes Bitcoin Short, Predicts Possible Price Rebound</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Arthur Hayes Closes Bitcoin Short, Predicts Possible Price Rebound

Table of Contents

TheCoinrise Media

Other articles published on Sep 8, 2024

WisdomTree Withdraws its Spot Ether ETF Application After Three Years

Ethereum Berjuang: Ada Potensi Bearish Sebelum Lonjakan Besar ke US$10.000

ChatGPT rolls out key macOS update in Europe and South Korea

Expert Says XRP Is Building Foundation of the New Financial System

Top Real World Asset Tokens to Watch This Week: Spotlight on QNT, ONDO, and OM

Hamster Kombat: Could This Meme Game Ignite Crypto’s Next Bull Run?

Join our free newsletter for daily crypto updates!