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Despite the likely testing of June lows, the value of the technology of the first cryptocurrency will increase as the economic confrontation between West and East intensifies, Arthur Hayes is sure
The former CEO of crypto platform BitMEX, Arthur Hayes, predicted a decline in the price of bitcoin to June lows near the $17.5 thousand mark in his new essay. According to a well-known bitcoin maximalist, this will be caused by a decrease in liquidity in US dollars due to the current monetary policy of the US government.
Hayes’ forecast is based on an analysis of the dollar liquidity index, with which the rate of the first cryptocurrency is correlated. But according to the analyst, the price of bitcoin also includes the value of the technology itself, which is not taken into account by the world community, since it has not yet been proven.
The recent past was a period of economic peace between East and West, but now the balance in the global financial and energy system is upset, which will lead to intense pockets of inflation, the essay says. Hayes believes that in this scenario, Bitcoin technology will be able to show its true value.
Until this happened, the analyst gave a forecast based on data on the balance sheets of the US Federal Reserve and the US Treasury, and came to the conclusion that before the end of the year, most likely, the price of bitcoin will once again test the June low of about $17.5 thousand.
Hayes also expressed doubts that Ethereum will reach high values this year, but Hayes will not sell assets and is determined to “be patient”.
In January, the former CEO of the BitMEX crypto exchange predicted that the price of bitcoin could fall to $20,000 if it breaks through the support level, which was at around $28,500.
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