Arthur Hayes, who used to be the CEO of BitMEX, thinks that Bitcoin will go up next week after he closes his short position. Hayes had said before that the price might drop below $50,000 over the weekend, which is what made him take a short position.
But on September 8, Hayes said on X (formerly Twitter) that he had closed his short trade because he thought Bitcoin would go up because the Federal Reserve might inject more cash into the market.
“Closed my $BTC short, made 3% profit, enough to cover my food and bar tab for KBW. With Bad Gurl Yellen watching mrkts and releasing a weekend statement, if stuff continues to puke next week $BTC *MIGHT* rise anticipating more $ liq.”
Bitcoin Tied to M2 Momentum
In answer to weak economic and financial markets, Hayes thinks that the Fed could make the U.S. dollar more liquid. He says that this could cause Bitcoin prices to go up a lot. He said that if standard markets keep falling, the Fed might add more funds to the system, which would make crypto investors feel better.
“Bad Gurl Yellen is watching, if markets go down more she will definitely pump up the jam by printing more money.”
The M2 funds supply, which is made up of cash and short-term bank savings, could be very important to Bitcoin’s possible rise. In a post on May 16, Jamie Coutts, top crypto analyst at Real Vision, said that Bitcoin often changes in response to changes in M2 momentum.
“This is due to a high correlation with $BTC bull cycles. Of the major 3 I track in my Bitcoin/Liquidity framework, Global M2 appears to capture the most of the moves.”
In May, the M2 supply went up year-over-year for the first time since November 2023. This was seen by some experts as a sign that investors may soon look for inflation hedges like Bitcoin. Even though investors are worried that the price could fall below $50,000, Hayes is still hopeful about a short-term rally.
“When BTC retraced -7% in September in 2021. BTC rallied +39% in the following October. Bitcoin is currently down -9% this September.”
Even though investors are worried that the price could fall below $50,000, Hayes is still hopeful about a short-term rally. Cryptocurrency analyst Rekt Capital also said that September’s drop in value is in line with past patterns. According to CoinGlass data, September has historically had the worst returns for the cryptocurrency, averaging -4.69%.
