TL;DR
- Arthur Hayes, the BitMex founder of BitMEX, predicts a potential decline in Bitcoin and crypto prices around the upcoming Bitcoin halving event on April 20th, 2024. He attributes this to the widespread market anticipation and a decrease in dollar liquidity.
- Despite his belief in cryptocurrency, Hayes has chosen to refrain from trading until May and has cashed out profits from his investments in MEW, SOL, and NMT, transferring the funds into Ethena’s USDe.
- Hayes’ cautious stance contrasts with the optimism of executives like Ripple CEO Brad Garlinghouse, who predicts that the overall cryptocurrency market value will double in the coming year, mainly due to the emergence of spot ETFs and the impending Bitcoin halving event.
Arthur Hayes, the BitMEX founder, has given his thoughts on the upcoming Bitcoin halving event set for April 20th, 2024. This event, built into the Bitcoin protocol, cuts the mining reward in half and happens every four years or after 210,000 blocks are mined.
Hayes recognizes the overall excitement about the halving as a good thing for cryptocurrency prices, but he disagrees with this idea by proposing that the price could decrease during the halving. He believes that this potential decline is due to the widespread anticipation in the market about the event, stating that when most people anticipate a specific result, the opposite often occurs.
Arthur Hayes also mentions that the halving aligns with a decrease in dollar liquidity, potentially intensifying a crypto sell-off. As a result, he has chosen to refrain from trading until May. Hayes has also cashed out profits from his investments in MEW, SOL, and NMT, transferring the funds into Ethena’s USDe for better returns.
Comparing Views: BitMex Founder and Ripple CEO Brad Garlinghouse
Even though Hayes acknowledges that the market could still go up despite his negative view, and he wishes for it to do so, considering his enduring belief in cryptocurrency, he chooses not to keep a close eye on his risky investments while he is at the TOKEN2049 gathering in Dubai (18-19 April 2024).
Hayes takes a cautious stance, in contrast to executives like Ripple CEO Brad Garlinghouse, who are more optimistic. Garlinghouse believes that the overall cryptocurrency market value will double in the coming year, mainly due to the emergence of spot ETFs and the impending Bitcoin halving event.
In conclusion, while the Bitcoin halving event is generally seen as a bullish catalyst, Hayes warns that the market dynamics could lead to a slump in Bitcoin and crypto prices in general around the halving. His views serve as a reminder to investors to exercise caution and consider various factors when making investment decisions in the volatile crypto market.
