Arthur Hayes, one of the well-known names in the cryptocurrency market, attracted the attention of altcoin investors with his prediction that Bitcoin may decline in the near future. In his last blog post, the former BitMEX CEO predicted that Bitcoin would find support in the range of $ 30,000-35,000 in the coming period, and in parallel with this prediction, he made significant adjustments in his altcoin portfolio.
Hayes commented on Bitcoin
Hayes thinks that turmoil in the global macro economy, interest policies of the US Federal Reserve (Fed) and US presidential elections may put downward pressure on Bitcoin. In addition, he expresses concern that the conflict in the Red Sea could increase global shipping costs and therefore trigger inflation.
The expectation that the Fed might cut interest rates in March increased interest in risk assets. However, Hayes predicts that high transportation costs may increase inflation later in the year and the Fed may postpone interest rate cuts to prevent this situation. This situation may negatively affect the cryptocurrency market, including Bitcoin.
Situations in the USA may affect the cryptocurrency market
Hayes also points out that the US government’s support for banks may also end. The end of this support may cause problems in the banking sector and cause a liquidity crisis in the markets. Hayes thinks that if the government does not extend this support, “a few banks will fail in the market” and the Fed may then cut interest rates.
Shaping his own investments according to these predictions, Hayes announced that he purchased a $ 35,000 option for Bitcoin. This is a strategy aimed at limiting potential losses if Bitcoin’s price falls below $35,000. However, Hayes sees Bitcoin falling below this level as a bottom and plans to buy again at this point.
Altcoin sold
Hayes’ predictions about Bitcoin could also have important implications for the altcoin market. If Bitcoin declines, altcoins are likely to lose value as well. Therefore, altcoin investors need to closely follow Bitcoin’s price movements and adjust their investment strategies accordingly.
It is also noteworthy at this point that Hayes removed altcoins such as Solana and Bonk from his portfolio. This move can be interpreted as a sign of a cautious approach towards the altcoin market. Altcoin investors should take such movements into account when reviewing their portfolios. As a result, Bitcoin’s potential decline also poses risks to the altcoin market. It is important for investors to make investment decisions carefully, taking this risk into consideration. Diversification, use of stop-loss orders and following market trends are important strategies that will protect investors during this period.
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