Bitcoin (BTC) is predicted to enter a bull market by BitMEX co-founder Arthur Hayes. Hayes believes that the overwhelming U.S. government spending and money printing will contribute to Bitcoin's momentum. He explains that despite the Federal Reserve's anti-inflationary measures, the amount of credit in the economy is still expanding, which will boost the value of Bitcoin and other assets. Hayes emphasizes the importance of Bitcoin's limited supply and speed, making it a valuable asset in the current economic era. He recommends holding crypto as the best way to preserve wealth amidst loose fiscal and monetary conditions [dce846d3].
Hayes further asserts that Bitcoin is the best investment option in the current global economic and geopolitical climate, which he likens to the conditions in the 1930s and 1970s. He argues that as the world moves towards war and economies focus on war preparation, investors will be financially repressed, making Bitcoin a superior safe-haven asset. Hayes points out that the US government's forecast increase in spending in the lead up to the election makes a recession extremely unlikely, further strengthening the case for Bitcoin. He also highlights the historical economic cycles and the role of gold as a store of value outside the state-controlled financial system. Hayes predicts that the current economic period will resemble the 1930s, and Bitcoin will continue to outperform traditional assets [f1c89751].
Bitcoin (BTC) is experiencing a bear market as outflows from Bitcoin ETFs continue amidst a gloomy macroeconomic environment. Research by André Dragosch, head of research at ETC Group, shows that more than 80% of Bitcoin's price action can be explained by changes in global growth expectations over the past six months [113f8461]. Global crypto hedge funds have reduced their BTC exposure to the lowest level since October 2020, coinciding with net outflows from global crypto Exchange Traded Products (ETPs). Institutions have withdrawn $600 million in the past week, reflecting a lack of confidence in the market [113f8461]. The U.S. House of Representatives budget committee has also suggested a looming recession, adding to the pessimistic sentiment [113f8461]. Angel investor Jason Choi has liquidated all ETH positions and taken a defensive stance on the market, categorizing it as a bear market [113f8461]. James Butterfill, head of research at CoinShares, attributes the lack of price appreciation to the Federal Reserve's hawkishness [113f8461]. The market is expected to see mostly sideways volatility and some further downside in the summer months, but there is a positive outlook for the rest of the year due to factors such as the halving effect, the possibility of Donald Trump's re-election, and continued inflows into Bitcoin ETFs and ETH ETFs [113f8461]. While large entities have been selling in the short term, net inflows year-to-date for ETFs remain at historic highs, indicating a cautious short-term sentiment but bullishness in the medium to long term [113f8461]. The cryptocurrency market is experiencing uncertainty with Bitcoin (BTC) nearing range lows on multiple timeframes. Factors contributing to this include substantial supply overhang, recent outflows from US spot Bitcoin ETFs, and high volatility on Thursdays and Fridays. The US economy is showing signs of cooling, with declining consumer optimism and a slowdown predicted in the third and fourth quarters of 2024. Despite challenges in the housing market, retail sales are growing modestly. The industrial sector remains a bright spot. The Federal Reserve may consider a rate cut in September. The German government's sale of Bitcoin contributed to a decline in BTC. Leading ETF providers are preparing to launch Ethereum ETFs [8cb15337]. The recent sale of over $195 million worth of Bitcoin by the German government contributed to Bitcoin's crash last Friday. Ethereum ETF approval filings could lead to a positive shift in market sentiment [19d52918].