Bitcoin’s price is not expected to return to $77,000 soon, according to BitMEX co-founder Arthur Hayes. Recently, Bitcoin dipped near this price for the first time since November, but Hayes believes the Fed’s decision to slow down its asset sell-off indicates that significant monetary tightening is over. This change could ease liquidity pressures, benefiting Bitcoin and other risk assets. Experts agree this shift supports a more favorable Market environment, with many hopeful for future growth. Despite Bitcoin being down 22% from its all-time high in January, some analysts view this as a normal Market correction and expect a recovery in the coming months.
Bitcoin’s Future: Insights from Experts on Price Trends
Recently, Bitcoin seems to be in a tricky spot. The cryptocurrency was hovering around the $77,000 mark, causing many to speculate about its next moves. BitMEX co-founder Arthur Hayes have weighed in, suggesting that it’s unlikely for Bitcoin to return to that price level anytime soon. This sentiment comes after the Federal Reserve indicated that it will slow down its quantitative tightening efforts.
Bitcoin’s Recent Performance
As of March 10, Bitcoin dipped close to $77,000 for the first time since last November, according to CoinMarketCap data. In a post on X, Hayes hinted that this price point might have been the bottom for Bitcoin. Following the Fed’s decision to reduce the monthly Treasury cap from $25 billion to $5 billion starting in April, Hayes expressed that quantitative tightening is “basically over.” This shift in policy could ease liquidity pressures and potentially boost assets like Bitcoin.
Expert Opinions
Hayes is not alone in this view. Real Vision’s chief crypto analyst Jamie Coutts echoed similar sentiments, stating that quantitative tightening is “effectively dead.” Coutts pointed out that recent “treasury volatility” has calmed, which is positive for liquidity. Additionally, Axie Infinity co-founder Jeff “JiHo” Zirlin noted that the Fed’s slowdown is beneficial for both crypto and equity markets.
Market Sentiment Shifts
The overall mood in the crypto Market has turned more positive following these comments from the Fed. The Crypto Fear & Greed Index, which tracks Market sentiment, has moved into “Neutral” territory for the first time since late February. Even though Bitcoin is still down nearly 22% from its January highs, some experts, like Infinex founder Kain Warwick, believe this correction is normal during a bull Market cycle.
In conclusion, with the Federal Reserve’s shift in policy and improving Market sentiments, the outlook for Bitcoin may be more optimistic in the coming months. Investors should keep a close eye on how these changes might impact the cryptocurrency landscape.
Tags: Bitcoin price, Federal Reserve, quantitative tightening, cryptocurrency Market, Market sentiment.
What does it mean when analysts say Bitcoin is likely at the bottom around $77K?
Analysts suggest that $77K could be a low point for Bitcoin, meaning it might not drop much further. They look at Market trends and economic factors to make this guess.
Why do analysts think quantitative tightening (QT) is ‘effectively dead’?
Analysts believe QT isn’t having the expected impact anymore. They think central banks may slow down or stop tightening their policies, making money easier to access, which can help Bitcoin’s price.
What are the main factors influencing Bitcoin’s price right now?
Bitcoin’s price is affected by several things like Market demand, investor sentiment, regulatory news, and macroeconomic trends. When people feel positive, they buy more, driving prices up.
How can investors use this information about Bitcoin’s potential bottom?
Investors may consider buying Bitcoin if they believe the price won’t drop much below $77K. They should always do their own research and think about their financial situation before investing.
Is Bitcoin still a good investment despite this analysis?
Whether Bitcoin is a good investment depends on individual risk tolerance and Market conditions. Some people believe in its long-term potential, while others may be cautious due to its volatility.