• Home
  • NFT
  • Metaverse
  • Cryptocurrency
No Result
View All Result
  • Home
  • NFT
  • Metaverse
  • Cryptocurrency
No Result
View All Result
No Result
View All Result
Home Cryptocurrency

Arthur Hayes Predicts a 30% drop in Bitcoin Price Amid Financial Uncertainties

admin by admin
January 8, 2024
in Cryptocurrency
0 0
0
Arthur Hayes Predicts a 30% drop in Bitcoin Price Amid Financial Uncertainties
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter


Navigating Through Potential Market Upheaval

Arthur Hayes, the former CEO of BitMex and current chief investment officer of Maelstrom, has forecasted a significant downturn in the Bitcoin market, anticipating a 20-30% plunge in the coming months. This prediction comes amidst looming financial uncertainties and echoes the sentiments of several market analysts who foresee a challenging period ahead for cryptocurrencies.

A Glimpse into Hayes’ Forecast

Hayes’s recent blog post highlights two critical financial developments that could trigger market instability. First, the depletion of the Federal Reserve’s reverse repo program (RRP), which has been a significant source of liquidity for markets, is rapidly decreasing. Hayes predicts the RRP balance, which dropped from a record high of $2.5 trillion at the end of 2022 to $700 billion, will further decline to its historical average of around $200 billion by March.

Second, the expiry of the Bank Term Funding Program (BTFP) on March 12 poses another risk. This program, instrumental in averting last year’s regional banking crisis, offered banks funding against their U.S. government bond holdings. With its potential expiry, banks might face challenges fulfilling deposit withdrawals, leading to broader financial repercussions.

Bitcoin’s Price Trajectory: A Rollercoaster Ride Ahead?

In this turbulent financial landscape, Bitcoin is expected to mirror the broader market’s volatility. Hayes forecasts a “healthy” correction for Bitcoin, with a potential 20-30% decline from early March prices, and possibly up to 40% if Bitcoin rallies to $60,000-$70,000 in the preceding weeks.

The Silver Lining: Bitcoin’s Anticipated Rebound

Despite the expected sharp decline, Hayes believes Bitcoin will rebound quicker than other financial markets. His confidence in Bitcoin stems from its status as a neutral reserve currency, untethered from the liabilities of the banking system and its global tradeability.

The Broader Crypto Market Sentiment

This prediction aligns with other market analysts’ views. CryptoQuant suggested a potential “sell the news” event if a spot-based ETF is approved, projecting Bitcoin could drop to $32,000. Similarly, K33 Research advised reducing market exposure due to overheating, while Matrixport’s head of research, Markus Thielen, warned of a correction based on technical indicators.

Preparing for a Financial Whirlwind

As the crypto market braces for possible upheavals, investors and traders must navigate cautiously. The combination of declining liquidity, the expiration of crucial financial support mechanisms, and broader market sentiment points towards a challenging period ahead. However, Bitcoin’s unique position in the financial ecosystem may offer it a quicker recovery path, underscoring its resilience in the face of global financial tremors.



Source link

Previous Post

BlackRock Prepares for Workforce Reduction Amid Bitcoin ETF Anticipation

Next Post

“Ninjalerts’ ‘SNES Emulator’ for Classic Gaming on Bitcoin

admin

admin

Next Post
“Ninjalerts’ ‘SNES Emulator’ for Classic Gaming on Bitcoin

"Ninjalerts' 'SNES Emulator' for Classic Gaming on Bitcoin

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
CoinShare CSO: BTC will hit an all-time high in 24 months

CoinShare CSO: BTC will hit an all-time high in 24 months

July 13, 2022
This Indian Couple Decided to Hold a Hogwarts-themed Metaverse Wedding Reception

This Indian Couple Decided to Hold a Hogwarts-themed Metaverse Wedding Reception

June 25, 2022
Interview with Coin Of The City NFT

Interview with Coin Of The City NFT

May 2, 2022
Soho Studio Labs ‘First Love’ James Rizzi Collection

Soho Studio Labs ‘First Love’ James Rizzi Collection

February 14, 2023
Reshaping & Innovating the Music Industry Through NFTs

Reshaping & Innovating the Music Industry Through NFTs

0
Fixing Broken Gamenomics: How to End Infinite Selling Pressure in P2E Gaming Economies

Fixing Broken Gamenomics: How to End Infinite Selling Pressure in P2E Gaming Economies

0
CryptoArt Sundays: Interview with Bushra Khan

CryptoArt Sundays: Interview with Bushra Khan

0
Big Time Readies Early Access for Gold VIP Pass Holders

Big Time Readies Early Access for Gold VIP Pass Holders

0
Everything You Need to Know About Super Champs

Everything You Need to Know About Super Champs

July 29, 2025
Everything You Need to Know About Finalbosu

Everything You Need to Know About Finalbosu

July 25, 2025
Everything You Need to Know About Azuki Elementals

Everything You Need to Know About Azuki Elementals

July 23, 2025
Best NFTs to Watch in July 2025 

Best NFTs to Watch in July 2025 

July 22, 2025

Recommended

Everything You Need to Know About Super Champs

Everything You Need to Know About Super Champs

July 29, 2025
Everything You Need to Know About Finalbosu

Everything You Need to Know About Finalbosu

July 25, 2025
Everything You Need to Know About Azuki Elementals

Everything You Need to Know About Azuki Elementals

July 23, 2025
Best NFTs to Watch in July 2025 

Best NFTs to Watch in July 2025 

July 22, 2025

About Us

We bring you the latest NFT News and update from all around the Internet!

Categories

  • Cryptocurrency
  • Metaverse
  • NFT
No Result
View All Result
  • Home
  • NFT
  • Metaverse
  • Cryptocurrency

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist