According to Arthur Hayes, the former CEO of BitMEX, Bitcoin (BTC) may have found its bottom during the dip to $77,000 on March 10. Hayes shared his view in a recent post on X (formerly Twitter), suggesting that changes in U.S. Federal Reserve policies could drive BTC’s recovery.
Hayes pointed to the Fed’s decision to slow its quantitative tightening (QT) program starting April 1. QT reduces the money supply by offloading assets like government bonds. While this measure helps control inflation, it often leads to higher interest rates and slows economic growth. The Fed’s move to ease QT could benefit riskier assets like Bitcoin and stocks.
Hayes wrote, “QT is basically over. Was BTC $77K at the bottom? Probably. But stocks may face more pain before things improve. Stay nimble and cashed up.” He also noted that bullish catalysts like Supplementary Leverage Ratio (SLR) exemptions or a return to quantitative easing (QE) could further boost the market.
The SLR exemption, previously used during crises, allowed banks to exclude specific assets from leverage calculations, promoting lending. QE, on the other hand, increases the money supply and can positively impact high-risk assets like BTC.
Jeff Jirlin, co-founder of Axie Infinity, agreed with Hayes, saying the end of QT could benefit both crypto and equity markets. However, he highlighted that current monetary policies are the tightest since 2010.
Bitcoin Faces Mixed Signals
Despite growing optimism, BTC still faces challenges. Recently, Bitcoin broke a 12-year trend line against gold, raising concerns about market uncertainty. Additionally, CryptoQuant CEO Ki Young Ju warned that the Bitcoin bull run might be over.
As of now, BTC is trading at $85,203, marking a 2% increase in the last 24 hours. While the market outlook remains uncertain, easing monetary policies could support Bitcoin’s long-term growth.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your own research before making any investment decisions.
Note: This article has been refined and enhanced by ChatGPT.
