I wouldn't call it a crash, it's barely a correction, but Bitcoin price is falling.
Arthur Hayes, a well-known name in the crypto world, predicts the Bitcoin halving will eventually pump up prices, but warns that right before and after the halving, things could get a bit grim. The halving has a solid reputation for boosting crypto prices, but when everyone believes in a certain outcome, it often swings the other way.
Hayes thinks the halving is happening when the dollar liquidity is tighter than usual, and the Fed and Treasury policies play a significant role in the markets. This mix could cause a firesale of crypto assets around the halving.
April's second half will be a shaky period for risky assets, thanks to U.S. tax payments draining liquidity, the Fed reducing the money supply, and the Treasury's general account not being touched. But after May 1, when the Fed meets, Hayes expects a slowdown in money supply tightening, and the Treasury is set to inject $1 trillion into the system, which could pump up markets.
"If I miss a few percentage points of gains but definitely avoid losses for my portfolio and lifestyle, that is an acceptable outcome," he added.
Arthur Hayes, a well-known name in the crypto world, predicts the Bitcoin halving will eventually pump up prices, but warns that right before and after the halving, things could get a bit grim. The halving has a solid reputation for boosting crypto prices, but when everyone believes in a certain outcome, it often swings the other way.
Hayes thinks the halving is happening when the dollar liquidity is tighter than usual, and the Fed and Treasury policies play a significant role in the markets. This mix could cause a firesale of crypto assets around the halving.
April's second half will be a shaky period for risky assets, thanks to U.S. tax payments draining liquidity, the Fed reducing the money supply, and the Treasury's general account not being touched. But after May 1, when the Fed meets, Hayes expects a slowdown in money supply tightening, and the Treasury is set to inject $1 trillion into the system, which could pump up markets.
"If I miss a few percentage points of gains but definitely avoid losses for my portfolio and lifestyle, that is an acceptable outcome," he added.