Arthur Hayes Predicts Bitcoin Price Will Experience Massive Correction by Early March
BitMEX Co-Founder Arthur Hayes has predicted a massive correction in Bitcoin’s price, anticipating a decline ranging from 20% to 30% by early March.
Hayes outlined his viewpoint in a detailed post, warning traders amidst the ongoing crypto bull market. Hayes anticipates a potential harsh correction in March, preparing for what he terms a “vicious washout” affecting crypto investors who may be considered “tourists” in the market.
Arthur Hayes wrote:
“I expect Bitcoin to experience a healthy 20% to 30% correction from whatever level it has attained by early March. The washout could be even more severe if the slate of US-listed spot Bitcoin ETFs has already commenced trading.”
The crypto industry veteran further opined that Bitcoin could see 30% to 40% correction if the anticipation of massive fiat inflows into Bitcoin ETFs propelled the cryptocurrency’s price above $60,000 and close to its 2021 all-time high of $70,000.
Hayes outlined three critical variables colliding in March that could impact the crypto market:
Reverse Repo Program (RRP) Balance Decline: Hayes highlighted the importance of monitoring the RRP balance, suggesting that if it approaches zero, the markets may experience a downturn. He linked the RRP balance decline to liquidity injection and the need for alternative sources to sustain market momentum.
Bank Term Funding Program (BTFP) Renewal: The decision on whether to renew the BTFP on March 12th becomes crucial, with implications for banks seeking cash to swap with U.S. Treasuries. Hayes predicted a potential non-renewal due to the upcoming election year.
Federal Reserve Rate Cut: The Fed’s March meeting on the 20th may see its first rate cut since 2021. Hayes analyzed the interdependence of these variables,
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