Contrary to popular opinion, BitMEX founder Arthur Hayes thinks the upcoming Bitcoin (BTC) will temporarily dampen the crypto market’s momentum.
In a new analysis, Hayes argues that the macro setup is actually favorable for traders interested in shorting the crypto market.
However, he notes that he doesn’t plan to short the market himself, just abstaining from trading until next month.
“The Bitcoin block reward is forecast to halve on April 20th. This is seen as a bullish catalyst for crypto markets. I agree that it will pump prices in the medium term; however, the price action directly before and after could be negative.
The narrative of the halving being positive for crypto prices is well entrenched. When most market participants agree on a certain outcome, the opposite usually occurs. That is why I believe Bitcoin and crypto prices in general will slump around the halving.
Given that the halving occurs at a time when dollar liquidity is tighter than usual, it will add propellant to a raging firesale of crypto assets. The timing of the halving adds further weight to my decision to abstain from trading until May.”
Hayes says he took profit in Solana (SOL) and the Solana-based memecoin “cat in a dog’s world” (MEW).
Explains the crypto veteran,
“The proceeds were placed into Ethena’s USDe and staked to earn that phat yield. Before Ethena, I would have held USDT or USDC and earned nothing while Tether and Circle captured the entire T-bill yield.
Could the market defy my bearish inclinations and continue higher? Fuck yeah. I’m perennially long as fuck crypto, so I welcome being wrong.”
Ethena (ENA) is a synthetic dollar protocol that aims to provide a crypto-native solution for money not reliant on traditional banking system infrastructure via a stablecoin called USDe. Hayes is an investor in the project.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Generated Image: DALLE3
Read the full article here
Follow us on Google News to get the latest Updates
