🔥🔥🔥 $BTC #halving to fuel ‘raging firesale of crypto assets’ — Arthur Hayes
Cryptocurrency markets are poised for significant turbulence in the latter half of April, driven by the upcoming #BitcoinHalving and a series of maneuvers from the United States Federal Reserve and the Department of the Treasury, according to #BitMEX co-founder Arthur Hayes.
In an April 8 blog post, Hayes expressed his belief that while the Bitcoin halving may ultimately lead to price increases in the medium term, the immediate effects before and after could be negative, contrary to the prevailing narrative.
"The narrative of the halving being positive for crypto prices is well entrenched. When most market participants agree on a certain outcome, the opposite usually occurs," Hayes cautioned.
He pointed out that the halving coincides with a period of tighter dollar liquidity and outlined his theory on how the policies of the Federal Reserve and Treasury impact the markets. Despite his bearish inclinations, Hayes admitted the possibility of being wrong, emphasizing his enduring bullish stance on cryptocurrencies.
Hayes highlighted the second half of April as a precarious period for risky assets, citing factors such as U.S. tax payments reducing liquidity, the Federal Reserve initiating quantitative tightening to decrease the money supply, and the Treasury's general account (TGA) remaining untapped.
Following the Fed's meeting on May 1, Hayes anticipated a reversal in the tightening of the money supply, with the Treasury likely injecting an additional $1 trillion of liquidity into the system from the TGA, which could stimulate markets.
Source - cointelegraph.com
