Arthur Hayes, founder of BitMEX, one of the leading cryptocurrency exchanges, shared his views on the future course of Bitcoin. Hayes expects a Bitcoin correction in early 2024.
Hayes Says Bitcoin's Bull Run Could Face a 20-30% Correction
Hayes expects Bitcoin to undergo a healthy correction of 20% to 30% from current levels by early March.
Hayes suggests the correction could be even more significant if the highly anticipated US-listed spot Bitcoin ETFs have already begun trading.
He outlines a scenario in which the expectation of significant fiat inflows into these ETFs could push Bitcoin's price above $60,000 and close to its 2021 all-time high of $70,000.
In his analysis, Hayes warns of a potential correction of 30% to 40% triggered by “a withdrawal of dollar liquidity.”
This event represents a sudden and significant reduction in liquidity, particularly in US dollars, and could have a cascading effect on asset prices.
However, the prospect of large-scale institutional investment through Spot Bitcoin ETFs has been a focal point in the cryptocurrency market.
Institutional participation is often viewed as a key driver of price movements, and the launch of Bitcoin ETFs is expected to bring significant capital into the crypto space.
*This is not investment advice.