BitMEX co-founder Arthur Hayes announced on Twitter that he closed his short position in Bitcoin (BTC) and made a 3% profit.
The move comes as US Treasury Secretary Janet Yellen is expected to make a major statement on the market over the weekend, which is expected to lead to an influx of US dollar liquidity next week and a subsequent surge in the value of Bitcoin.
Earlier this week, Hayes predicted that Bitcoin could fall below $50,000 over the weekend and took a short position based on that expectation. However, Bitcoin has since rebounded from its monthly lows and most recently rose above $54,000.
Hayes decided to close his position earlier today, citing the possibility that Bitcoin could gain value following Yellen's upcoming statements.
However, the decline experienced in all markets, including traditional markets, last week came after the possibility of a recession in the US grew stronger.
*This is not investment advice.