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According to a recent X post Arthur Hayes of crypto entrepreneur Arthur Hayes believes that Bitcoin (BTC), which plunged to $77,000 in March 2010, probably reached a bottom. Hayes warned that, while BTC might have reached its bottom, the stock market could still face further pain.
BTC Bottomed At $77,000? Hayes believes so
Arthur Hayes, the former BitMEX chief executive officer recently told X that BTC is likely to have a future. bottomed At $77,000. The well-known crypto market analyst referred back to US Federal Reserve’s latest comments signalling the end quantitative tightening. Hayes commented:
JAYPOW has delivered and QT is basically done. We need either a SLR exclusion or to restart QE. What was? BTC $77K is the lowest, probably. The pain is not over for stonks to convert Jay fully to the Trump team. So stay agile and cash-rich.
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The QT, for those who are not familiar with it, is a Fed monetary policy that aims to reduce the money supply through selling assets like bonds and letting them mature. This can help control inflation but it also leads to higher rates of interest and a slower economy.
In June 2022, the Fed started its latest QT cycle to fight high inflation caused by COVID’s economic stimulus. The Fed is less inclined to maintain QT now that the inflation rate appears to have eased.
The Fed announced yesterday that it would slow down the rate of balance sheet reductions from 1 April onwards. This shift in monetary policies is expected to boost risky assets such as BTC, stocks and other equities.
Hayes stated that in his X posting, the next possible bullish catalysts would be either a reduction of the Supplementary Leverage Ratio or the introduction of Quantitative Easing (QE).
The SLR exemption allowed for banks to temporarily exempt certain assets from their calculation of leverage, such as US Treasuries, central bank reserve and US Treasury securities, to promote lending and to help support financial markets in times of crisis. QE, on the other hand, is the Fed’s monetary policy that increases money in the economy. This could benefit high-risk assets such as BTC.
Jeff Jirlin, co-founder of Axie infinity echoed Hayes expressed his sentiments by stating the end of QT in April would be beneficial. “great for both crypto and equity markets.” Jirlin also said the current monetary policies are the strictest that he’s seen since 2010.
Bitcoin Still Not Over?
The market is optimistic following recent Fed comments but the leading cryptocurrency has not yet recovered. BTC has recently been a good example. broke down The 12-year trend against gold has raised fears that economic instability will increase in the short term.
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CryptoQuant’s CEO Ki Young Ju also recently spooked The market will likely be swayed by the announcement that the Bitcoin bull-run is over. BTC was trading at $85,203 by the time of publication, an increase of 2% over the last 24 hours.
Featured Image from Unsplash. Chart by TradingView.com
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Source: www.newsbtc.com
