September’s volatility has crypto traders concerned – but Bitcoin has enjoyed a solid start to the week, contradicting bloodshed on the ASX.Arthur Hayes Closes Short Position, Expects Explosive Reversal in Bitcoin Price
Analyst and crypto entrepreneur Arthur Hayes wanted to profit from Bitcoin’s sluggish September, putting in a short position at US $50k.
BTC dug its heels in and never looked like dropping below the mark, causing Hayes to drop his position.
Now, following the US Treasurer’s positive macroeconomic outlook, Hayes predicts Bitcoin can pump up in price over the next fortnight as liquidity returns to the markets.
It was a bloodbath on Wall St and the ASX over the weekend, as futures markets predicted heavy drops among most major indices. This ended up ringing true, with the Nasdaq falling nearly 3%, the ASX dropping 1% and the S&P 500 falling 2%.
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With US job figures poor, Bitcoin experiencing a tough month and the crypto market still heavily linked to macroeconomic factors, you’d forgive BTC for waking up on the wrong side of bed today.
However, the crypto market demonstrated resilience after being battered this week, with BTC climbing 1.4% over the past 24 hours.
And according to analyst and founder of BitMEX, Arthur Hayes, this turnaround might just be the beginning.
Bitcoin Doesn’t Come Close to US $50k Floor Following Strong Start to Week
Hayes went on record last month to describe his skepticism of the US economic policy, predicting medium-term pain for the nation in spite of cash rate cuts. He also mentioned that Bitcoin would likely feel the pinch after a short-term “sugar high”.
Doubling down on his thoughts, Hayes announced he’d launch into a “cheeky short”, believing BTC would fall below US $50k (AU $75k).
However, this worst-case scenario never eventuated, forcing Hayes to close his short position and even suggest that a price spike could be coming as soon as this week.
Crypto Market in “Extreme Fear” as US Economists Laud Falling Inflation
For those out of the loop with the crypto lingo, Hayes is implying that US Treasurer Janet Yellen’s positive economic outlook has softened the blow of investor sentiment turning sour through September.
Liquidity has often been a great macroeconomic indicator for Bitcoin, and the lowering of US cash rates in the next ten days could play a big role in BTC moving back toward US $60k (AU $90k).
Although September has been a rough month for crypto so far, this is not abnormal – and if macroeconomic fundamentals continue to settle, 2025 could shape up as a huge year for the digital currency markets.Arthur Hayes Closes Short Position, Expects Explosive Reversal in Bitcoin Price
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