Arthur Hayes, the co-founder and former CEO of BitMEX crypto exchange, has shared his positive outlook on the future of Bitcoin’s price. He predicts that the price will stabilize around $60,000 and then fluctuate between $60,000 and $70,000 until August 2024.
Hayes believes that the recent downward trend in the Bitcoin price is due to factors such as the US tax season, uncertainty surrounding Federal Reserve actions, and the impact of the Bitcoin halving event. However, he sees these as necessary adjustments for the market.
Hayes supports his optimistic forecast by referencing the Federal Reserve’s announcement to decrease the rate of quantitative tightening (QT). This method is used by central banks to reduce the circulation of money in the economy. By tapering QT, the Fed will add billions of dollars of liquidity, offsetting negative price movements and gradually pushing crypto prices higher.
Hayes describes the Fed’s approach as “stealth money printing,” as gradually reducing its balance sheet will ease dollar liquidity and stabilize market conditions.
Dr. Jeff Ross, the founder and CEO of Vailshire Capital Management, shares similar insights with Hayes. He suggests that the widely held belief that the Bitcoin bull market has concluded may be incorrect and that the actual bullish run for the Bitcoin price may be yet to start.
Overall, Hayes and Ross both believe that the Federal Reserve’s shift in quantitative tightening policy and its potential impact on dollar liquidity will play a significant role in driving Bitcoin’s price rally back to $70,000.