Arthur Hayes, the Chief Investment Officer of Maelstrom and former BitMEX CEO, shared his prediction about a potential drop in Bitcoin prices with followers of the Yellen or Talkin’ blog on substack.
According to Hayes, this scenario is likely due to a combination of various political and economic events that have significantly raised investors’ inflation expectations. These events include the conflict in the Red Sea between the United States and the Houthis, the aftermath of the military clash in the Gaza Strip, and their impact on global shipping.
Furthermore, uncertainty in the cryptocurrency market is supported by the US preparations for the presidential elections, as well as the opacity of the Federal Reserve System’s policies towards the crypto industry and the overall economy.
Hayes believes that geopolitical events will negatively affect the digital asset market, as the US government will have to provide support to producers and US banks by injecting additional liquidity.
Based on his analysis, Arthur Hayes predicts a 30% correction from the peak of the Bitcoin Exchange Traded Fund (ETF) at $48,000. In the short term, Hayes expects the market price of BTC to fall within the range of $35,000 to $30,000.
Currently, the leading cryptocurrency is trading around $39,500. In the past 24 hours, the coin has seen a 0.01% increase, while its weekly performance has shown a 7% drop.
Earlier, Kiarash Hossainpour, the founder of Colorways Ventures and The Consensus, stated that there could be strong downward pressure on the market value of Bitcoin from January to June, as large holders of the cryptocurrency might potentially sell their assets.