The founder of the exchange predicts a 30% drop

Important points:

• BitMEX co-founder Arthur Hayes predicted that Bitcoin would fall by 30% in the first quarter of 2024.
• “I am preparing for a brutal defeat of all crypto tourists in March of this year,” he wrote on his blog.
• Likewise, Hayes believes that BTC will rise between January and February and that the correction will be “healthy” before resuming its upward trend.

Arthur HayesThe co-founder of BitMEX, made a comment that took the entire crypto market by surprise Bitcoin will drop 30% In the first quarter of the year.

“I am preparing for a brutal defeat of all crypto tourists in March this year

“, he wrote on his blog while suggesting that will sell Some of their positions in this regard.

Three Reasons Bitcoin Is Sinking

1. Reverse Repo Program (RRP) which, if it goes as close to zero as expected, markets will experience recession. Further, he attributed the decline in PVP balance to the need for alternative sources of liquidity injection and market momentum to sustain.
2. Renewal of Bank Term Financing Program (BTFP). If this does not happen by March 12 (something that could be an election year), the banks will not have the money to exchange with Treasury bonds.
3. The Fed meets on March 20 and the body is expected to announce the first rate cut. If not, it will affect the stock market and cryptocurrency market.

What’s Next for Bitcoin?

The co-founder of the exchange clarified that he hopes so There will be boom in January and February Thanks to the launch of Spot Bitcoin ETF for the leading cryptocurrency Will be approved soonsaid.

“I hope Bitcoin experiences that 20% to 30% healthy correction Whatever level it reached in early March. The failure could be even more severe if the Bitcoin ETF had already started trading“

there is

The expert highlighted that hundreds of billions of dollars of fiat money will flow into the BTC ETF, bringing the price closer to its all-time high of $69,000.

“A 30% to 40% correction can easily be seen due to reduced dollar liquidity” added the businessman.

It should be noted that Hayes is optimistic about the future of Bitcoin: “With that brief market upheaval, the cryptocurrency may have rebounded amid speculation about the impact of the impending Bitcoin block reward halving.“

In several interviews, Hayes has said that he projects Bitcoin A million dollars

In the coming years.

BTC has gained 1.7% in the last 24 hours to just over $44,000.