Arthur Hayes, the co-founder of BitMEX, is predicting a wild ride for Bitcoin (BTC) in 2024. He’s forecasting a significant price drop before a massive surge to new all-time highs.
A Dip Before the Rocket?
Hayes believes Bitcoin is more likely to fall to between $70,000 and $75,000 before rocketing to $250,000 by year’s end. He acknowledges this drop would be “ugly” given current market optimism. This prediction comes after a shift in his outlook from earlier bullishness.
Why the Change of Heart?
Hayes cites several factors influencing his bearish short-term prediction:
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Macroeconomic Worries: He points to slowing growth in money supply in major global economies (US, China, and Japan) as a key concern. He also mentions unease stemming from central bank activities and the relationship between treasury yields, stock prices, and Bitcoin’s price.
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Unexpected Developments: While positive developments like potential regulatory changes and the launch of a Trump-related memecoin initially boosted sentiment, these were largely anticipated. The unexpected slowdown in fiat money creation is what truly shifted his perspective.
The Bottom Line
Despite the predicted dip, Hayes remains ultimately bullish on Bitcoin’s long-term prospects. He sees the potential correction as a necessary step before a massive price increase. However, he cautions that this is just his prediction, and investors should always conduct their own research before making any investment decisions. Remember, crypto investments are inherently risky.