After experiencing a significant downturn, the cryptocurrency market saw signs of recovery during Friday’s trading session in Asia, with Bitcoin (BTC) eyeing a rebound to the $60,000 mark. Amidst market volatility, former BitMEX CEO Arthur Hayes commented on recent Federal Reserve cuts, cryptically suggesting that meme coin PEPE might withstand the ongoing market turmoil.
Arthur Hayes Discusses Market Dynamics and Meme Coins
In his latest blog post titled “Mayday,” Hayes discussed the Federal Reserve, U.S. Treasury, and recent bank bailout policies, labeling them as disguised money printing. With this backdrop, he expressed his intention to re-enter the market, specifically targeting lesser-known cryptocurrencies, or as he termed them, “super shitty shitcoins.”
Hayes highlighted that Bitcoin might have hit a local bottom at approximately $58,600 and anticipated a gradual recovery over the next few months. He predicted that Bitcoin could climb back above $60,000 and potentially fluctuate between $60,000 and $70,000 until August. This forecast comes after Bitcoin experienced a 12% pullback this week, which Hayes described as a necessary “market cleansing.”
He attributed the market’s recent movements to a variety of factors including tax season pressures in the U.S., uncertainty surrounding Federal Reserve policies, a typical “sell the news” event following the Bitcoin halving, and a decrease in inflows to spot Bitcoin exchange-traded funds.
Future Market Trends
Hayes is optimistic about the market’s prospects, suggesting that the recent downturn could lead to a rebound driven by increased dollar liquidity resulting from the Federal Reserve’s quantitative tightening taper and the U.S. Treasury’s debt issuance plans. He views these actions as covert forms of money printing, likely to benefit high-risk assets like cryptocurrencies.
Concurring with Hayes, other market analysts also foresee a potentially sideways market in the coming months. Jeff Ross, founder and CEO of Vailshire Capital Management, emphasized the importance of navigating the current “bullcrab market,” suggesting that the real bull market may not have started yet. He interprets the Federal Reserve’s recent shifts in rhetoric as indicative of improving liquidity conditions.
Institutional crypto brokerage MatrixPort further noted that, historically, Bitcoin tends to exhibit sideways movement for four to five months post-halving. Despite recent market swings, Bitcoin has shown resilience, gaining 4.2% on the day to trade at $59,804, although it remains 19% below its mid-March peak.
Not a financial advice.