Billionaire Arthur Hayes thinks that the price of Bitcoin could go down before and after it is halved.

Wealthy man Arthur Hayes is worried about how the upcoming Bitcoin halving will affect the price of the asset.

Many experts think Bitcoin’s price will go up after the halving, but Hayes believes it could actually go down before and after.

In a blog post published on April 8, Hayes pointed out that the prevailing narrative surrounding the halving is that it will have a positive impact on crypto prices. 

But he warned that when most people in the market think something will happen, the opposite usually happens.

Hayes thinks that the prices of Bitcoin and other cryptocurrencies might go down when the halving happens.

The amount of US dollars available could affect how cryptocurrencies are traded.

Another reason why Hayes is worried is because there won’t be as much US dollars available around the time when the amount of bitcoins being produced is expected to be reduced by half.

He thinks that the shortage of money available will cause people to sell their crypto assets.

Because of this, Hayes has chosen not to trade until May. This is because April 15 is the tax payment deadline and May 1 is when the Federal Reserve will talk about possibly reducing its Quantitative Tightening program.

Hayes said that the expected slowing down of the Federal Reserve’s balance sheet will be good for the availability of dollars.

He thinks May 1 will be a big change, with risky investments becoming safer and more money available, because Janet Yellen and the Fed are doing things to make investments more valuable.

 

While Hayes does not plan to short the market outright, he has closed profitable positions in various cryptocurrencies and intends to remain in a no-trade zone until May 1. 

“From now until May 1st, I will be in a no-trade zone. I hope to return in May with dry powder ready to deploy to position myself for the bull market to begin in earnest.”

Other experienced cryptocurrency experts are still hopeful.

Despite what Arthur Hayes says, other business leaders like Brad Garlinghouse from Ripple are still positive.

Garlinghouse thinks that the total value of cryptocurrencies will go up by 100% this year. This will happen mainly because of new investment funds and Bitcoin’s reward being cut in half.

He thinks that the increase of real money from organizations using ETFs is a big reason for the positive outlook.

“I feel really hopeful. ” I believe that the big picture trends like ETFs are now attracting real institutional money for the first time, u201d he told CNBC on April 7.

Similarly, Matteo Greco, who researches investments at Fineqia International, thinks that Bitcoin will go up to $75,000 when the halving event happens.

“In the past, when BTC halves, the price goes up for 9-18 months before reaching a peak. ” He wrote in a recent note.

On a good note, investors put $646 million into crypto products. This made the total money put into crypto products this year reach $13. 8 billion, which is more than last year’s total of $10. 6

Latest stories

You might also like...