Arthur Hayes Expects Crypto Market Correction in March 2024:
- Arthur Hayes, co-founder of BitMEX, predicts a major correction in the cryptocurrency market in March.
- According to Hayes, three major macroeconomic factors could lead to a 40% drop in Bitcoin.
- He believes that decisions by the US Federal Reserve and financial programs heavily influence the market.
Three Macroeconomic Factors That Worry Arthur Hayes:
Arthur Hayes, former CEO and co-founder of BitMEX, recently highlighted three macroeconomic factors that could cause a significant drop in cryptocurrencies in March.
These factors include the Reverse Repo Program (RRP) of the Federal Reserve, the Bank Term Funding Program (BTFP), and the imminent Fed decision on interest rates.
Hayes emphasizes that the combination of these elements could result in a “ruthless purge of crypto tourists“, thus affecting the market as a whole.
A 30-40% Correction on Bitcoin?
According to Hayes, these macroeconomic factors could trigger a healthy correction in Bitcoin, potentially up to 40%, especially if the approval of Bitcoin Spot ETFs by the SEC propels its price beyond its ATH (~$70,000).
“I expect Bitcoin to experience a healthy correction of 20 to 30% from the level reached in early March”
– Arthur Hayes
Furthermore, he predicts that this correction will coincide with the expiration of BTFP on March 12th, followed by a possible intervention from the US Treasury Secretary, Janet Yellen, to renew the program in case of major banking failure.
Hayes also anticipates that the Fed meeting on March 20th could mark a turning point, with a possible interest rate cut.
However, Hayes emphasizes that this correction would be only temporary, and he expects the cryptocurrency market to resume a positive trend towards the end of the month, fueled by speculation around Bitcoin’s halving in April.