Former Bitmex CEO Arthur Hayes has explained why he believes that “ bitcoin and crypto prices in general will slump around the halving.” He added that from now until May 1, he “will be in a no-trade zone,” emphasizing that “April will experience extreme weakness in risky asset markets.”
Former Bitmex Chief Expects Crypto Prices to 'Slump' Around the Bitcoin Halving
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Bitcoin Price Will ‘Slump Around the Halving,’ Hayes Says
Former Bitmex CEO Arthur Hayes shared his thoughts on the upcoming bitcoin halving in a Medium post last week.
Discussing the halving, which is “seen as a bullish catalyst for crypto markets,” he described: “I agree that it will pump prices in the medium term; however, the price action directly before and after could be negative.” The former Bitmex chief noted: “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 opined:
I believe bitcoin and crypto prices in general will slump around the halving.
“Given that the halving occurs at a time when dollar liquidity is tighter than usual, it will add propellant to a raging fire sale of crypto assets. The timing of the halving adds further weight to my decision to abstain from trading until May,” Hayes detailed.
He explained that the “precarious period for risky assets” is from April 15 to May 1. “This is when tax payments remove liquidity from the system, QT rumbles on at the current elevated pace, and [Treasury Secretary Janet] Yellen has yet to start running down the TGA [Government’s Treasury General Account].”
Hayes further shared that after May 1, “it’s back to regular programming … asset inflation sponsored by Fed and U.S. Treasury financial shenanigans.”
The former Bitmex CEO believes that “April will experience extreme weakness in risky asset markets.” He noted: “For those intrepid enough to short crypto, the macro setup is favorable. While I will not outright short the market, I have closed in profit several shitcoin and memecoin trading positions.” He continued:
From now until May 1st, I will be in a no-trade zone. I hope to return in May with dry powder ready to deploy to position myself for the bull market to begin in earnest.
Do you agree with Arthur Hayes that crypto prices will slump around the bitcoin halving? Let us know in the comments section below.
