BitMEX Founder Arthur Hayes Expects a Rise in Bitcoin and This Altcoin! Here's Why
BitMEX founder Arthur Hayes predicts that with the US government reopening, market liquidity will recover, positively impacting Bitcoin (BTC) and Zcash (ZEC) prices. Hayes noted that recent declines in Bitcoin prices and market liquidity were due to increased US Treasury holdings. He believes the end of the US government shutdown will reinject funds into the market, driving a revival in cryptocurrency prices. Hayes also suggests Zcash (ZEC), as a privacy-focused cryptocurrency, could particularly benefit from increased liquidity and investor interest.
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Arthur Hayes' Prediction on Market Liquidity
BitMEX founder Arthur Hayes has predicted that with the US government reopening, market liquidity will recover, which will have an upward impact on Bitcoin (BTC) and Zcash (ZEC) prices.
Current Market Conditions and Decline in Liquidity
In his post dated November 5, Hayes highlighted that despite the US debt ceiling being raised since July, the Bitcoin price has dropped by 5%, while overall market liquidity has decreased by 8% in the same period.
Reason Behind Liquidity Reduction
The primary reason behind the decline is attributed to the US Treasury Department increasing its general account holdings (referred to as NPL) and subsequently withdrawing liquidity from the market.
Rebound Expectations After Government Shutdown
According to the renowned analyst, a drop in NPL balances following the end of the US government shutdown may lead to a re-influx of funds into the market. This is expected to result in a general revival in the cryptocurrency market and create upward momentum, particularly for BTC prices.
Potential Benefits for Privacy-Focused Cryptocurrency ZEC
Hayes also emphasized that Zcash (ZEC), a privacy-focused cryptocurrency, might benefit more than Bitcoin during this liquidity shift. He believes increased liquidity and heightened investor interest could propel ZEC into a stronger uptrend.
Considerations for Market Participants
The statements made by Arthur Hayes are regarded by market participants as an important warning about the influence of US financial policies on crypto assets.
This is not investment advice.