Arthur Hayes, co-founder of cryptocurrency exchange BitMEX and Chief Investment Officer at Maelstrom Fund, expressed his views on Bitcoin BTC/USD trading, emphasizing the importance of fiat liquidity over specific price targets.
What Happened: In an interview with YouTuber Kyle Chasse, Hayes agreed that traders should not focus on a particular price target for Bitcoin but rather on the expectations and reality of fiat liquidity growth.
“It’s more about how do you think the expectation of what fiat liquidity growth has to happen to justify this price versus the
reality of what’s going on and what the politicians and the central bankers are actually saying,” the Bitcoin bull said.
To elucidate his point, Hayes used the example of the last bull market peak in 2021. During the December meeting, Federal Reserve Chair Jerome Powell hinted at a shift toward a high-interest rate regime. What then followed was stagnation and, eventually, a bear market.
Hayes said it all came down to fiat liquidity for him. “How many dollars, euros, yen, and yuan are being created and destroyed, and that’s going to make its way into what we think the price of Bitcoin should be right now and into the near future,” he explained.
On a side note, he predicted Bitcoin would hit a “numerically interesting” figure.
“We’re gonna hit that level, and then we’re going to expect insane things out of the pace of fiat money creation. At that point, it’s probably time to sell everything,” Hayes stated.
See Also: Trump Endorses Pro-Bitcoin Senator Cynthia Lummis For Re-Election, Says She Is Working To Make US The Crypto Capital
Why It Matters: Hayes’s emphasis on fiat liquidity could potentially offer a more nuanced understanding of market trends and price movements.
Earlier this month, he predicted Bitcoin would reach $110,000 before retesting the $76,500 level due to the Fed’s pivot from quantitative tightening to quantitative easing.
In the long term, he is confident that the apex cryptocurrency will hit the $1 million mark, regardless of any government support or regulatory clarity.
Price Action: At the time of writing, Bitcoin was exchanging hands at $87,469.21, down 0.53% in the last 24 hours, according to data from Benzinga Pro.
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