Arthur Hayes Expects Crypto Market to Peak in March – Here’s Why

Over the past 24 hours, the crypto market has taken an unexpected but attractive turn. The valuation of major crypto assets like bitcoin (BTC) has soared to heights not seen since the beginning of the year.

The market’s recent performance has caused crypto experts like Arthur Hayes, co-founder and former CEO of BitMEX, to restructure their projections. In his latest report, Hayes explained that the ongoing tap cycle will conclude in March.

The bull cycle continues until March

In December, the BitMEX co-founder explained that the crypto market would likely face a “heartbreaking dump” around January 20 because crypto enthusiasts would realize that Donald Trump’s administration may not comply with all promises Hayes argued that the Republican president-elect cannot make sudden policy changes after taking office to accommodate crypto-oriented votes.

With crypto prices rising, Hayes had to rethink his approach. He suggested that the Trump dump he was speculating about had likely occurred between mid-December and the end of the year. However, this did not rule out the possibility of a possible price cut in the short term.

“I still think it’s a potential negative factor that could weigh on the market in the short term, but against that, I have to balance the dollar’s liquidity boost. Bitcoin, for now, is sinking as change the pace of dollar issuance,” he wrote.

Addressing risk-takers at his family office, Maelstrom, where he is chief investment officer (CIO), Hayes recommended that the risk dial be turned to “ten.” He added that the market could continue to see bullish trends until March.

How will dollar liquidity play its role?

Maelstrom’s CIO predicts that actions by the Federal Reserve and the Treasury Department will fuel positive dollar liquidity, benefiting crypto assets like BTC. It predicts that up to $612 billion will add liquidity to the economy in the first quarter of this year.

Shortly thereafter, Hayes expects negative dollar liquidity factors, such as the April 15 tax deadline, to cause financial players to migrate their money from assets like crypto to cover these expenses. This, he believes, will mark the bearish trend.

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