Arthur Hayes Bets on Bitcoin Recovery: Shifts from Bearish to Bullish Amid Dollar Liquidity Boost

  • Arthur Hayes shifts to a bullish Bitcoin outlook, closing his short position and anticipating a market rebound with increased dollar liquidity.
  • Peter Brandt identifies a bullish inverted head-and-shoulders pattern for Bitcoin, suggesting potential gains compared to gold.
  • Market sentiment improves from “extreme fear” to “fear,” aligning with Hayes’ new Bitcoin recovery forecast despite potential Fed rate impacts.

Billionaire investor Arthur Hayes now expects the cryptocurrency market to grow, according to his recent estimate for the price of Bitcoin. Having made a 3% profit, BitMEX co-founder Hayes sold his short Bitcoin investment. His opinion that more US dollar liquidity will aid in the cryptocurrency industry’s recovery is demonstrated by this change.

Peter Brandt’s Bullish Technical Signal

Expert trader Peter Brandt updated his prediction for Bitcoin as well. Brandt drew attention to an important technical development, a large inverted head-and-shoulders pattern building on the Bitcoin price chart. Traditionally, this configuration has been seen as a bullish signal, especially when compared to gold.

Hayes declared on September 8 that he was closing his short position in Bitcoin on X, citing a more upbeat assessment of the cryptocurrency’s future. He has changed his prediction from before that Bitcoin would stay below $50,000 to now predicting a comeback. 

As evidenced by the Crypto Dread & Greed Index, which increased from 23 to 29, this move is consistent with the general market attitude, which witnessed a noticeable swing from “extreme fear” to “fear”.

The change in market mood is the result of remarks made by Janet Yellen, the Treasury Secretary. Because of Yellen’s comments, the market is now anticipating more dollar liquidity, which Hayes thinks might raise the price of Bitcoin.

Conversely, Peter Brandt has renounced his previous prediction that the price of Bitcoin would drop to $46,000. He is now positive about Bitcoin in relation to gold because of the inverted head-and-shoulders pattern that is still being built.

Market Pressures and Federal Reserve Watch

Nonetheless, there may be immediate pressures on the market. Before the Federal Reserve announces its interest rate decision on September 18, there may be downward pressure on the price of Bitcoin and the equities markets, according to Alvin Kan, COO of Bitget Wallet. Although Kan cautions about potential short-term price declines brought on by market volatility, he argues that a verified rate cut might strengthen risk assets like Bitcoin.

Investors are undoubtedly awaiting the next moves by the Federal Reserve, with CME FedWatch figures showing a 70% chance of a rate decrease by a quarter of a percent and 30% of a cut by 50bps.

This is a bit different from the previous bullish prediction by Hayes, who considered that Bitcoin may jump to more than 73,700$ and could reach up to 100,000$ in price. He believes that during the upcoming weekend, the price of Bitcoin may drop below 50 000$.

The post Arthur Hayes Bets on Bitcoin Recovery: Shifts from Bearish to Bullish Amid Dollar Liquidity Boost appeared first on Crypto News Land.


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