Arthur Hayes Warns Crypto Traders of Intense Sell-Off Before Bitcoin Halving

Arthur Hayes, the co-founder of BitMEX, has predicted a significant drop in crypto asset prices coinciding with the anticipated Bitcoin (CRYPTO: BTC) halving and moves by the Federal Reserve.

Event Overview: Hayes forecasts a turbulent market for cryptos in late April, driven by the Bitcoin halving event and the Federal Reserve and Treasury’s financial maneuvers. Hayes outlined these insights in a post on his blog dated April 8.

Hayes anticipates an interim downturn in cryptocurrency values around the halving event, which he believes coincides with “an unusually tight dollar liquidity environment.”

He commented, “… I expect that Bitcoin, along with the wider cryptocurrency market, will experience a dip around the halving event… This is likely to intensify what could already be described as a severe sell-off of cryptocurrency assets.”

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Moreover, Hayes points to the second half of April as a risky time for assets, with contributing factors being U.S. taxpayers’ liquidity withdrawals, the Fed’s initiation of Quantitative Tightening (QT), and the Treasury’s General Account (TGA) lying dormant.

Following the Federal Reserve’s meeting on May 1, Hayes predicts a deceleration of monetary tightening and forecasts the Treasury will inject a sizable sum of liquidity, “most likely an extra $1 trillion,” potentially buoying the markets.

Significance: Hayes’ conjectures emerge as Bitcoin (BTC) rides a significant increase, with a year-to-date rise of 61.55% and a value of $71,359. Recognized for his earlier advice to not hastily disregard meme coins, Hayes has projected Bitcoin’s ascent to a $1 million valuation.

Despite expected market fluctuations, industry experts are envisioning a potential breakout for Bitcoin, driving its value to unprecedented highs. Yet, the actual impact of the forthcoming Bitcoin halving and Federal Reserve policy on the cryptocurrency sector remains uncertain.

Current Trading Status: Bitcoin is presently valued at $71,122.10 at the time of this publication, a slight retraction of 0.69% in the past 24 hours, but still maintaining a year-to-date uptick of 61.01% according to the latest figures from Benzinga Pro.

Next Read: Bitcoin, Ethereum, Dogecoin Tick Upward As BTC Halving Approaches: Potential for $300K Cycle Highs Suggested by Analyst

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