BitMEX Co-Founder Arthur Hayes Believes Bitcoin Can Rebound Towards $70,000 Amid 'Stealth Money Printing'
In a blog post early on Friday, Hayes said slowly adding billions of dollars of liquidity each month would cushion negative price movements in the future, reversing common sentiment about market seasonality by suggesting "buy in May, go."
Hayes argues that recent policy announcements from the US Federal Reserve and Treasury are "stealth forms of money printing" and while the cryptocurrency market won't realize this right away, he expects prices to "hit bottom, cut off and slowly start to rise."
In January, Hayes suggested that the cryptocurrency market could see a significant correction in March, citing colliding macroeconomic factors.
"The price action played out as I expected," Hayes said on Friday. "US tax season, dismay over what the Federal Reserve will do, Bitcoin halving sell news event, and a slowdown in Bitcoin ETF assets under management (AUM) growth "The US merged during the previous fortnight to produce a much-needed market clean-up."
Explaining his reasoning, Hayes highlighted the Federal Reserve's announcement this week that it would reduce the quantitative easing rate - a tool used by central banks to decrease the amount of money circulating in the economy - from $95 billion to $60 billion per month, essentially adding $35 billion per month of dollar liquidity.
Additionally, Hayes highlighted the U.S. Treasury's recent quarterly refund announcement, highlighting the amount and type of debt issuance needed to fund the government.
