Arthur Hayes, the founder of BitMEX, shared his perspectives on the future of Bitcoin and the cryptocurrency market in general, attracting attention in the financial community. Hayes anticipates a correction in the price of BTC during the early months of 2024. His analysis suggests that this correction could range between 20% and 30%, providing what he considers a healthy adjustment for the leading cryptocurrency.
Hayes’s prediction is based on the possibility of the long-awaited US-listed Bitcoin ETFs coming into operation. In his most optimistic scenario, Hayes raises the possibility that institutional investments through these exchange-traded funds (ETFs) could drive Bitcoin’s price above $60,000, approaching its 2021 all-time high of $70,000.
However, the founder of BitMEX does not overlook potential risks. He warns that, in the case that Bitcoin ETFs are already operating, the correction could be even more pronounced, reaching between 30% and 40%. This scenario is grounded in the possibility of a significant withdrawal of liquidity in dollars, which could have a substantial impact on asset prices.
Hayes Argues That to Trace Bitcoin’s Path, One Must Look at Market Fluctuations
It is important to note that Arthur is not alone in his reflections. Other analysts have also emphasized the importance of monitoring market fluctuations when making investment decisions, especially in relation to key events. In particular, the decision on the renewal of the Bank Term Funding Program (BTFP) and a potential rate cut by the Federal Reserve in March are critical elements that could influence the market’s perception of future dollar liquidity.
With this context in mind, Hayes has outlined his trading strategy. To mitigate potential losses during this volatile phase, he plans to acquire put options expiring in June. Despite the higher costs associated with longer-term options, Hayes argues that the reduction in premium decay justifies this investment.
Arthur Hayes’s predictions shed light on the possible trajectory of BTC in the coming months. We approach significant events in the history of the leading cryptocurrency, and the key will be to deeply analyze the market to opt for the best investment option.
