Arthur Hayes Bitcoin He made a price prediction for BTC and predicted that BTC could experience a significant price correction in the coming weeks.
Hayes is of the view that the reduction in US dollar liquidity due to the Federal Reserve ending the Bank Term Funding Program (BTFP) in March will cause “crypto fads to go away.”
Koinfinans.com As we reported as According to the analyst, in the US spot Bitcoin exchange traded fund The approval of (ETF) applications and the subsequent start of trading in the products could further fuel a Bitcoin selloff triggered by declining dollar liquidity.
“I expect Bitcoin to experience a healthy correction of 20% to 30% from the level it reached in early March. This decline could be even more severe if U.S.-listed spot Bitcoin ETFs are already trading. Consider that the expectation of hundreds of billions of fiat to flow into these ETFs at some future date pushes Bitcoin above $60,000 and closer to its 2021 all-time high of $70,000. “I could easily see a 30% to 40% correction due to withdrawal of dollar liquidity.”
Hayes says another potential banking crisis triggered by the BTFP expiration could force the Federal Reserve to ease monetary policy, ultimately helping Bitcoin recoup its losses.
“BTFP ends on March 12 and the Fed interest rate decision is announced on March 20. There are six trading days between these two major decision points. If my prediction is correct, the market will bankrupt several banks during this time, forcing the Fed to lower interest rates and announce the resumption of BTFP.
Bitcoin will initially decline sharply but will recover before the Fed meeting. This is because Bitcoin is the only neutral reserve currency that is not a liability to the banking system and is traded globally. Bitcoin knows that when things go bad the Fed ALWAYS responds with a liquidity injection. Therefore, Bitcoin will rise sharply before and into the Fed’s eventual capitulation to restart the currency printer.”