Arthur Hayes Closes Bitcoin Price Short Position, Predicts Crypto Market Recovery

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As a seasoned crypto investor with over a decade of trading under my belt, I find myself intrigued by the optimistic forecasts of Arthur Hayes and Peter Brandt. Having navigated through multiple market cycles, I can attest to the fact that even the most bearish predictions can be turned on their head in this volatile industry.

Arthur Hayes, a billionaire cryptocurrency investor and co-founder of BitMEX, believes that the crypto market will bounce back due to increasing liquidity in the US dollar market once more. In fact, Hayes has already closed his short position on Bitcoin‘s price, earning a 3% profit from the recent market downturn.

Experienced investor Peter Brandt shared insights suggesting Bitcoin’s price graph could be shaping an enormous reversed head-and-shoulders structure, indicating a highly optimistic trend compared to gold.

Arthur Hayes Predicts Crypto Market Recovery

On September 8th, in a post on X, Bitcoin billionaire Arthur Hayes announced that he had closed his Bitcoin short position. Now, he anticipates a rebound in the Bitcoin price and overall crypto market by the upcoming week, a significant departure from his previous prediction of prices below $50K.

According to an earlier report by CoinGape, large investors (whales) began purchasing when prices dropped due to a shift in sentiment that pointed towards a decline below the $50K mark.

The move comes in response to Treasury Secretary Janet Yellen’s market oversight and statement. Hayes says Bitcoin may gain upside momentum due to expectations of increased dollar liquidity.

If markets continue to decline, former Fed Chair Janet Yellen may intervene by increasing monetary supply, essentially injecting more liquidity into the economy.

— Arthur Hayes (@CryptoHayes) September 7, 2024

Furthermore, Peter Brandt has deviated from his initial predictions suggesting a low of $46K for Bitcoin. In response to Bitcoin skeptic Peter Schiff, experienced trader Brandt expressed that Bitcoin appears bullish when compared to gold due to the emergence of a substantial inverse Head and Shoulders pattern formation in its price movement.

Over the past day, there’s been a slight shift in the crypto market mood, moving from “extreme fear” to just “fear.” The Crypto Fear & Greed Index has risen from 23 to 29 today.

Can Bitcoin Price Recover Despite CPI and PPI Inflation Data?

Crypto traders remain unsure about the crypto market rebound as the Consumer Price Index (CPI) is set for release on Wednesday and the Producer Price Index (PPI) follows on Thursday. Additionally, the market for the spot Bitcoin ETF is struggling to gain institutional investor support due to issues in September, with approximately $700 million in net outflow last week.

economists and financial experts predict that the Consumer Price Index (CPI) will decrease more, specifically to 2.6%, which is lower than the current 2.9%. The slackening job market and decreasing inflation may provide the Federal Open Market Committee (FOMC) with a sufficient rationale to reduce interest rates by half a percentage point (50 basis points) in September.

According to the CME Fed Watch tool, there’s approximately a 70% chance that the Federal Reserve will lower interest rates by 0.25 percentage points in September. Furthermore, it is predicted that the Fed may reduce rates by a total of 1 percentage point throughout this year.

Furthermore, as the US dollar index (DXY) surpasses 101 once more, the 10-year Treasury yield dips to 3.716%, marking a 15-month low, primarily due to a weakening job market. This trend appears beneficial for Bitcoin’s value.

According to CoinGape’s analysis, Bitcoin price is expected to surge based on their predictions. Investors are closely monitoring the 50-week Exponential Moving Average (EMA), which previously played a significant role in curbing the downturn during the 2020 and 2021 bull market corrections. If this pattern repeats, a potential recovery following the 50-week EMA could propel Bitcoin prices upwards, possibly igniting another bull run.

Arthur Hayes Closes Bitcoin Price Short Position, Predicts Crypto Market Recovery

Over the next few days, movements in CPI Bitcoin will likely shape the market’s trajectory for the following weeks. At present, Bitcoin is trading at approximately $54,300 but has encountered resistance after a minor rebound. If Bitcoin manages to surpass the resistance at $55,508 (which represents a 0.236 Fibonacci retracement level), it could potentially trigger a breakout above a descending trendline, leading to a potential price increase towards $57,000.

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2024-09-08 11:52