Arthur Hayes Closes Bitcoin Short, Predicts Potential Rally Next Week

Arthur Hayes, the former CEO of BitMEX cryptocurrency exchange, has recently closed his Bitcoin short position after predicting a deep correction.

Former BitMEX CEO Arthur Hayes, who predicted a deep Bitcoin correction and took a short position on September 6, has now closed it with a 3% profit, suggesting a potential Bitcoin rally might be on the horizon.

The prospect of more liquidity injections by the Federal Reserve is expected to foster a positive sentiment among crypto investors, potentially boosting Bitcoin’s price. On September 7, Hayes noted the possibility of increased money printing by the US government, suggesting this could lead to a Bitcoin rally.

According to Hayes, the US government might print more money in the upcoming period, which could lead to a Bitcoin rally. This prediction aligns with the views of other experts in the field. For instance, Jamie Coutts, chief crypto analyst at Realvision, has articulated that the M2 money supply, encompassing all cash and short-term bank deposits in the US, is pivotal for the next Bitcoin surge.

In a May 16 tweet, Coutts highlighted the close correlation between the M2 money supply and Bitcoin bull cycles among the big 3 metrics he tracks in his Bitcoin/Liquidity framework.

Coutts noted that Bitcoin usually trends with shifts in M2 momentum, and among the big 3 metrics, the rate of change in the money supply is more crucial than the nominal value.

Due to the drastic price drop this week, investor sentiment plunged into extreme fear in the crypto market with concerns about Bitcoin potentially falling below $50,000. However, historical trends indicate that Bitcoin’s September performance follows predictable patterns akin to previous halving cycles.

When BTC retraced -7% in September in 2021. BTC rallied +39% in the following October.

Bitcoin is currently down -9% this September.

This aligns with prior bull market halvings.

Despite being a bearish month on average, September usually sets up bullish Octobers.

According to data from CoinGlass, on average, Bitcoin shows a -4.69% return in September, making it the most bearish month.

FAQs

What is Arthur Hayes’ current stance on Bitcoin?

After closing his short position on Bitcoin with a 3% profit, Arthur Hayes anticipates a potential rally due to increased dollar liquidity.

Why is the M2 money supply essential for Bitcoin?

The M2 money supply tracks all cash and short-term bank deposits in the US. Its changes often correlate with Bitcoin’s price movements, making it a significant indicator for potential rallies.

Why is September usually a volatile month for Bitcoin?

September historically shows a -4.69% return on average for Bitcoin, with frequent corrections. This aligns with previous Bitcoin halving cycles, often leading to improved performances in subsequent months.

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