Author Hayesthe co-founder and former Chief Executive Officer (CEO) of the cryptocurrency exchange and trading platform, BitMEX has released another blog post, predicting a major fire sale and a potential price drop for Bitcoin, the world’s largest cryptocurrency.
Bitcoin fire sale looms
In his blog postHayes provided a detailed analysis, explaining his perspectives on how Bitcoin’s halving would have a negative impact affect the price of the cryptocurrency.
The Bitcoin Halving is an event that happens every four years, cutting rewards for Bitcoin miners in half. This in turn reduces the amount of Bitcoin being created and leads to an increase in the value of the cryptocurrency.
While most analysts in the crypto market anticipate a bullish rally for Bitcoin and other altcoins during the halving event, Hayes has a more contradictory view, suggesting that the halving period could instead initiate more bearish action than expected.
Hayes has acknowledged that the price of Bitcoin and other cryptocurrencies are likely to rise during the halving period, at least in the medium term. However, the BitMEX co-founder has also predicted Bitcoin’s price action both before and after the halving event may become negative.
He revealed that because Bitcoin’s halving in 2024 coincides with a period of reduced liquidity in the economy US dollar (USD), it could potentially trigger a “frenzy of crypto asset selling.” The crypto founder also predicts the price of Bitcoin and other cryptocurrencies plummeting Around this time.
As a result, Hayes has advised the broader crypto community not to trade cryptocurrencies during this period. He emphasized that when the majority of market participants agree on a specific outcome, such as a rally caused by Bitcoin’s halving, the market tends to move in the opposite direction.
Despite his compelling predictions, Hayes admitted that the crypto market could defy his bearish predictionsessentially recognizing the speculative nature of his prediction.
Hayes says April is the best time to go short
In his blog post, Hayes revealed that the period from April 15 to May 1, 2024 would be precarious for risky assets in the financial sector. This is attributed to tax payments draining liquidity from the system and quantitative tightening (QT) accelerating during this period.
The crypto founder has suggested that this period could potentially provide an excellent short position for traders, indicating that April could be the ideal month short selling. He predicts that the market will return to its “regular programming” after May 1.
BTC price above $70,000 | Source: BTCUSD on Tradingview.com
Featured image from CNBC, chart from Tradingview.com
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