Arthur Hayes Issues Warning, Says Angry Bitcoin (BTC) and Crypto Sell-Off Could Be Coming – Here's Why

Contrary to popular belief, BitMEX founder Arthur Hayes believes that the upcoming Bitcoin (BTC) will temporarily dampen the momentum of the crypto market.

In a new analysis, Hayes argues that the macro setup is actually favorable for traders interested in shorting the crypto market.

However, he points out that he doesn't plan to short the market itself, just not making any trades until next month.

“The Bitcoin block reward is expected to halve on April 20th. This is seen as a bullish catalyst for the crypto markets. I agree that this will lead to an increase in prices in the medium term; However, the price movement immediately before and after could be negative.

The narrative that the halving will have a positive impact on crypto prices is firmly entrenched. When most market participants agree on a particular outcome, the opposite usually occurs. This is why I believe Bitcoin and crypto prices in general will collapse around the halving.

Given that the halving comes at a time when dollar liquidity is tighter than usual, it will drive a rapid sell-off in crypto assets. The timing of the halving adds additional weight to my decision to forego trading until May.”

Hayes says he took profits on Solana (SOL) and the Solana-based memecoin Cat in Dog's World (MEW).

Explains the crypto veteran,

“The proceeds were deposited into Ethena’s USDe and staked to generate this whopping return. Before Ethereum, I would have held USDT or USDC and earned nothing, while Tether and Circle reaped all the T-Bill earnings.

Could the market defy my bearish tendencies and continue rising? Shit yeah. I have always been a fan of cryptocurrencies, so I welcome being wrong.”

Ethena (ENA) is a synthetic dollar protocol that aims to provide a crypto-native solution to money that does not rely on the infrastructure of the traditional banking system through a stablecoin called USDe. Hayes is an investor in the project.

Don't miss a thing – Subscribe to receive email alerts straight to your inbox

Check price action

Follow us on Twitter, Facebook and Telegram

Surf the Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Generated image: DALLE3

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers