Arthur Hayes, co-founder and former CEO of BitMEX crypto exchange, recently shared his optimistic outlook on the future price of Bitcoin. He predicted that the price of Bitcoin would stabilize around $60,000, followed by fluctuations within the $60,000 to $70,000 range until August 2024. Hayes explained in a Medium blog post that Bitcoin’s price may have reached its lowest point and is set for a gradual recovery. He attributed the downward trend of the Bitcoin price to various factors, including the US tax season, uncertainty surrounding Federal Reserve actions, and the impact of the Bitcoin halving event. Hayes sees these indicators as a necessary adjustment for the market.
Hayes justified his rally insights by referencing the Federal Reserve’s recent announcement to decrease the rate of quantitative tightening (QT), a method used by central banks to reduce the circulation of money in the economy. The Fed plans to reduce the monthly cap on maturing Treasuries from $60 billion to $25 billion monthly, with an annual reduction in holdings at $300 billion. This reduction in QT will increase the amount of stimulus provided to global asset markets each month. Hayes predicted that as the Fed tapers QT, billions of dollars of liquidity will be added, offsetting negative price movements. He believes that this liquidity injection will gradually push crypto prices higher, albeit at a slow pace.
The insight from the BitMEX co-founder follows the release of the Federal Reserve’s rate, which will remain unchanged between 5.25% and 5.50%. Dr. Jeff Ross, the founder and CEO of Vailshire Capital Management, also commented on Arthur Hayes’ sentiments regarding his Bitcoin price prediction on X. Ross suggested that analysts could be in for a surprise, indicating that the widely held belief that the Bitcoin bull market has concluded may be incorrect. Instead, Ross argued that the actual bullish run for the Bitcoin price may be yet to start, sharing a similar outlook with Hayes on the future price of Bitcoin.
Arthur Hayes predicted that as the Fed tapers quantitative tightening, leading to increased dollar liquidity, the Bitcoin price will gradually recover and stabilize. He believes that billions of dollars of liquidity being added to the market will offset negative price movements and push crypto prices higher over time. Hayes sees the Federal Reserve’s approach as a form of “stealth money printing,” wherein reducing its balance sheet gradually would ease dollar liquidity and stabilize market conditions. This prediction is supported by the Federal Reserve’s recent announcement to decrease the rate of quantitative tightening, ultimately providing more stimulus to global asset markets each month.
Overall, Arthur Hayes and Dr. Jeff Ross share an optimistic outlook on the future price of Bitcoin, with Hayes predicting a stabilization around $60,000 and gradual recovery, while Ross suggests that the actual bullish run for Bitcoin may be yet to start. Both individuals reference the Federal Reserve’s actions, such as the reduction in quantitative tightening, as a key factor that will contribute to increased dollar liquidity and support the positive price movements in the crypto market. As the market continues to adjust to various factors affecting the price of Bitcoin, analysts and industry experts remain hopeful that the price of Bitcoin will gradually increase and experience stability in the coming months and years.
