Arthur Hayes, the former CEO of cryptocurrency exchange BitMEX, recently closed his short position on Bitcoin after initially predicting a sharp downturn below the $50,000 level. On September 6, Hayes expressed concerns that Bitcoin could face a significant correction, leading him to take a short position to potentially profit from the expected drop.
However, by September 8, Hayes had reversed his stance, announcing the closure of his short position with a modest 3% profit. In a post on X, he explained his rationale for exiting the position and hinted at a potential upcoming rally for Bitcoin: “Closed my $BTC short, made 3% profit… With Bad Gurl Yellen watching markets and releasing a weekend statement, if stuff continues to puke next week BTC MIGHT rise anticipating more USD liquidity.”
Hayes suggests that the Federal Reserve may soon inject more liquidity into the U.S. economy, which could drive Bitcoin prices higher. This potential for increased dollar liquidity comes as Hayes observes weakness across the economy and financial markets, which could prompt the Federal Reserve to act in order to stabilize conditions.
Moreover, Hayes speculated in a subsequent X post on September 7 that further downturns in traditional markets might lead to aggressive monetary intervention. “Bad Gurl Yellen is watching, if markets go down more she will definitely pump up the jam by printing more money,” he noted, indicating that such measures could positively impact Bitcoin prices by increasing investor sentiment in the cryptocurrency market.
This shift in strategy from Hayes highlights the dynamic and speculative nature of cryptocurrency trading, where market sentiment can quickly change based on macroeconomic indicators and regulatory actions.
