BitMEX CEO predicts retest of the cryptocurrency market bottom

According to Arthur Hayes, bitcoin’s recent sharp growth has caused a liquidation of short positions

23.07.2022 - 10:30

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What’s new? The co-founder and former CEO of cryptocurrency exchange BitMEX Arthur Hayes has released a new essay titled Excalibur. In it, he assesses the current monetary policies of the European Union and the United States and also shares his observations about the future of the crypto market. In his view, “a bottom is usually tested again before the bull market begins.” He also noted that bitcoin’s rise from $18 000 to $24 000 is a liquidation of short positions by traders.

Arthur Hayes’ essay

What else did Hayes add? The former BitMEX chief said that the bottom of the crypto market will be reached before the Federal Reserve System (Fed) and the US Treasury announce monetary policy easing.

“When this policy is announced, investors should consider going long and strong crypto. If you fancy yourself a TRADER, then you can set tight downside stops and venture into the crypto maelstrom early to catch better bargains,” the essay says.

Hayes also reported that he is not going to sell fiat and buy cryptocurrency just yet. The worst outcome for those investing for more than 6 months is to lose money due to market volatility and indecision about the position, Hayes writes in his essay:

“The market chop will obliterate anyone without proper belief in their investment thesis.”

Hayes previously wrote that the bitcoin rate would begin to rise when the Fed runs the printing press. In his view, the regulator will print money again if the dollar continues to strengthen against international currencies. He urged to keep an eye on the Japanese yen and the euro.

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