In his latest tweet, Arthur Hayes suggests that Quantitative Tightening (QT), a contractionary monetary policy tool which is used to reduce money supply, is likely going to end by April 1st. QT does affect the price of Bitcoin (BTC) and the overall cryptocurrency market. Moreover, he predicts that the bull run of Bitcoin is going to start soon which is a positive sign for cryptocurrency market. QE (Quantitative Easing), Expansionary monetary policy which is used to stimulate economic growth, needs to get started for the bull run of Bitcoin.
Arthur Hayes Predicts $77K as BTC Bottom, Expects QE to Fuel Growth
According to Arthur Hayes, $77,000 can possibly be the bottom price for Bitcoin in the ongoing correction. He is quite hopeful that soon the prices of Bitcoin may rise. He is of the view that QT is going to end and QE is starting soon which will be helpful for the growth of Bitcoin and other risk-based assets. He also praised the FED chair Jerome Powell in his tweet saying that he has delivered what he was supposed to do.
QT potentially impacts the price of Bitcoin. Central banks raise interest rates hence the liquidity of Bitcoin gets reduced. It becomes difficult to predict the price of Bitcoin when liquidity gets reduced. This was the reason that investors started going away from investing in Bitcoin during the last couple of months.
Arthur Urges the Investors to Remain Cashed-up
Arthur Hayes urges investors to remain flexible during QT time. He further predicts that in the next 10 days the price of Bitcoin may decrease further to $77,000 area. This will be the ideal time for the investors to buy Bitcoin. If this prediction goes right, the investors will get maximum benefit out of it. This is the reason that Arthur is urging the investors to be cashed up and remain flexible in order to get greater benefits.
Trending Now: Pakistan to Legalize Crypto to Attract Foreign Investment
He further predicts that the prices of stock market may decrease further unless Jerome Powell teams up with Donald Trump. Moreover, there is a possibility that if the prices of stock market decrease, the prices of cryptocurrency will also suffer. There is a correlation between cryptocurrencies and the stock market. Although cryptocurrencies are considered a separate asset class, they can still affect the overall sentiment of the stock market.