Arthur Hayes Predicts Bitcoin Will Reach $110,000 Before $76,500
Arthur Hayes forecast that Bitcoin will reach $110,000 before revisiting $76,500, citing easing selling pressure and market conditions as critical drivers. He highlights a shift in Federal Reserve policies toward quantitative easing, which could enhance liquidity and support Bitcoin’s upward potential, despite existing price concerns.
Bitcoin has recently stabilized, ranging between $81,000 and $89,000 over the past few sessions. This stability has alleviated concerns of a sharp decline beneath $80,000, suggesting diminishing selling pressure and encouraging buyers. Such conditions typically indicate an accumulation phase, which is often a precursor to further price rallies.
Despite easing selling pressure, a breakdown below $80,000 remains a possibility. However, Arthur Hayes, the former CEO of BitMEX and a prominent cryptocurrency investor, issued an ambitious forecast that Bitcoin will reach $110,000 before revisiting the $76,500 level. This upward movement would create a new all-time high, surpassing the previous peak of $108,786 recorded in January.
Currently, Bitcoin trades approximately 20.3% below its recent all-time high. There are valid concerns regarding potential corrections, particularly with the $76,500 threshold situated just below this month’s local low, which could be retested ahead of an upward surge. In a post on X, Hayes expressed confidence in reaching $110,000 first, attributing this to market momentum and monetary policy shifts favoring an upward trajectory rather than a decline.
A significant aspect of Hayes’ analysis revolves around the Federal Reserve’s changing liquidity policies. He observed a transition from quantitative tightening (QT) toward a phase of quantitative easing (QE). The Fed, which has pursued QT since June 2022, may pause or slow its balance sheet runoff, which some analysts speculate could lead to a liquidity increase benefitting Bitcoin prices. Hayes further alleviated inflation concerns, suggesting the Fed Chairman views current inflation trends as temporary.
At the time of this writing, Bitcoin is valued at $86,600, with a recent intraday high of $88,713 within the past 24 hours.
In summary, Bitcoin’s recent stability between $81,000 and $89,000 has led to decreased fears of a significant price drop. Arthur Hayes predicts that Bitcoin will reach $110,000 before retracing to $76,500, driven by shifts in monetary policy and market momentum. As the Federal Reserve potentially pivots from tightening to easing, this could provide additional liquidity, supporting higher Bitcoin price levels in the future.
Original Source: www.tradingview.com
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