Bitcoin is not expected to reach the $77,000 mark again soon, according to Arthur Hayes, a co-founder of BitMEX. Following signals from the Federal Reserve about slowing down its quantitative tightening measures, Bitcoin experienced a dip near this price for the first time since November. Hayes believes this could ease liquidity pressures, supporting Bitcoin and other risk assets. Other analysts, like Jamie Coutts and Jeff Zirlin, share optimism about the Fed’s actions benefiting both crypto and equity markets. Despite a significant drop from its all-time high of $109,000, Market sentiment has improved, indicating a potential mid-bull correction. Investors are cautiously optimistic about Bitcoin’s future performance.
Bitcoin Prices and Fed Policy: Insights from Experts
Bitcoin is showing signs of volatility as it approaches the $77,000 mark. According to Arthur Hayes, co-founder of BitMEX, there is little chance that Bitcoin will return to this price level anytime soon. These insights come after the Federal Reserve indicated a slowdown in its quantitative tightening (QT) measures, which may have a significant impact on the crypto Market.
The recent price movement of Bitcoin saw it dip near $77,000 for the first time since November. With the Fed’s announcement on March 19 to cut back on its asset sell-off from $25 billion to $5 billion a month beginning in April, many experts believe this could ease liquidity pressures in the Market. Hayes referred to QT as “basically over,” hinting at a potential positive shift for risk assets like Bitcoin.
Key Observations:
– Bitcoin has risen by 3.53% in the past week.
– Hayes suggests the next catalysts for Bitcoin could be a restart of quantitative easing (QE) or an exemption for the Supplementary Leverage Ratio (SLR), which would allow banks more flexibility with their Treasury holdings.
Adding to Hayes’ perspective, Jamie Coutts, a chief crypto analyst, said that QT is effectively finished, highlighting an increase in Market liquidity following recent fluctuations in treasury values. Optimists in the crypto space, such as Axie Infinity co-founder Jeff Zirlin, believe these changes could benefit both crypto and equity markets significantly, stating that the Fed has room to support business and Market growth.
Despite Bitcoin’s decline of nearly 22% from a January high of $109,000, some analysts suggest this is just a typical mid-bull Market correction. Kain Warwick, founder of Infinex, mentioned that he expects Bitcoin to continue its upward trend throughout the year.
In the wake of these developments, the overall sentiment in the crypto Market has improved, as shown by the Crypto Fear & Greed Index moving into “Neutral” for the first time in weeks. Observers are cautiously optimistic about Bitcoin’s future trajectory as the effects of Federal Reserve policies unfold.
This article does not offer investment advice, and readers are encouraged to do their own research before making any financial decisions.
What does it mean that Bitcoin is at the likely bottom of $77K?
Analysts believe Bitcoin could settle around $77K, meaning it might be the lowest price before it goes back up again. This suggests that now could be a good time to buy.
Why do analysts say Quantitative Tightening (QT) is ‘effectively dead’?
Analysts argue that QT, which is a way for central banks to reduce money supply, is no longer a concern. They think conditions in the Market are changing, making it less likely for QT to impact Bitcoin’s price negatively.
How does QT affect Bitcoin’s value?
QT can lead to higher interest rates and less liquidity in the Market. This often makes investors nervous, which can lower Bitcoin’s price. But if QT is truly dead, it may help support or even boost Bitcoin’s value.
Should I invest in Bitcoin now?
If you believe that Bitcoin has hit its bottom at $77K, it might be a good time to invest. However, always consider your own financial situation and do your research before making any decisions.
What are the experts predicting for Bitcoin in the future?
Many experts think that if Bitcoin is at its bottom, it could see significant gains in the coming months. They suggest that Market conditions are favorable for Bitcoin to rise, especially now that QT isn’t a major factor.