Former Bitmex CEO's Bitcoin Price Forecast
Former CEO of Bitmex, Arthur Hayes, has recently shared his predictions for a potential correction in the bitcoin market. In a Medium post, Hayes stated that he expects a 30% to 40% correction due to a dollar liquidity rug pull. He also warned that the introduction of spot bitcoin exchange-traded funds (ETFs) could make the situation even worse.
The Impact of Spot Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) is expected to approve multiple spot bitcoin ETFs in the coming week. Hayes highlighted the potential impact of these ETFs on the price of bitcoin. He explained that if the anticipation of fiat flowing into these ETFs drives bitcoin above $60,000, there could be a significant correction of 30% to 40% due to a dollar liquidity rug pull.
Three Variables Colliding in March
Hayes outlined three variables that he believes will collide in March. The first variable is the Fed's Reverse Repurchase Operations (RRPs), which he expects to reach $200 billion early in the month. Hayes emphasized that there needs to be another source of dollar liquidity to sustain the market's momentum.
The second variable involves the banks needing cash to swap with U.S. Treasuries and other eligible bonds repo'd with the Fed on March 12. Lastly, Hayes mentioned the possibility of the Fed initiating its first rate cut since 2021 at the Federal Open Market Committee meeting on March 20.
Hayes' Crypto Portfolio and Conclusion
Hayes shared that his crypto portfolio consists mainly of bitcoin and ether, which represent approximately 70% of his holdings. He explained that due to the poor liquidity of derivatives on other cryptocurrencies, he relies on bitcoin derivatives for a liquid macro crypto hedge.
In conclusion, Hayes expects the market to start correcting around March 12th if his forecasts are accurate. The introduction of spot bitcoin ETFs and the variables colliding in March could potentially lead to a significant correction in the bitcoin market.
What are your thoughts on Arthur Hayes' predictions? Let us know in the comments section below.
The best way to buy gold (or silver) online
You must first understand the workings of gold before you can purchase it. Precious metals like gold are similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types currently available: legal tender and bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They aren’t exchangeable in any currency exchange. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. For every dollar spent, the buyer gets 1 gram of Gold.
You should also know where to buy your gold. There are many options for buying gold directly from dealers. You can start by visiting your local coin shop. You might also consider going through a reputable online seller like eBay. You can also look into buying gold online from private sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great choice for investing gold as it allows you more control over its price.
An alternative option to buying gold is to buy physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
You can either visit a bank, pawnshop or bank to buy gold. A bank can give you a loan up to the amount you intend to invest in Gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks charge higher interest rates than those offered by pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold is easy too. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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