BitMEX Founder Arthur Hayes recently weighed in on Bitcoin’s price trajectory as the cryptocurrency community braces for its impending halving. Hayes posed a crucial question regarding whether Bitcoin (BTC) could sustain its all-time high in the lead-up to the halving event.
Hayes’ analysis forecasts a potential decline in BTC prices both before and after the halving, attributing this trend to anticipated constraints on dollar liquidity during this period, thus amplifying selling pressure among crypto asset holders.
Moreover, Hayes anticipates a resumption of a standard quantitative tightening (QT) cycle post-May 1, aligning with U.S. inflation trends. Consequently, he has opted to refrain from trading until May, awaiting potential discussions by the Federal Reserve regarding a reduction in its QT program.
On April 8, Bitcoin surged above $72,000, marking its highest point since mid-March. This surge is primarily fueled by the imminent Bitcoin halving, which will halve the block reward from 6.25 BTC to 3.125 BTC.
In contrast to Hayes’ perspective, numerous experts remain bullish on Bitcoin’s prospects. Skybridge Capital CEO Anthony Scaramucci, for instance, envisions the BTC rate soaring to $170,000 in the current cycle, with Bitcoin’s market capitalization eventually rivaling that of gold.
