Founder of BitMEX: Bitcoin to Form Support Between 30,000 and 35,000, I Will Buy the Dip on These Two Altcoins

BitMEX founder Arthur Hayes discusses the monetary policies of the US Treasury and the Federal Reserve System and their impact on the market in his latest article. Additionally, the article explores the correlation between the decline in Bitcoin prices and US fiscal policy.

Hayes points out that Bitcoin has dropped 30% from its high point of $48,000 at the time of ETF approval (at the time of writing, it is $33,600). He believes that Bitcoin will find support between $30,000 and $35,000, so he has purchased put options with a strike price of $35,000 expiring on March 29, 2024, and has simultaneously sold his positions in Solana and Bonk, incurring a small loss.

On the other hand, since the Bitcoin and cryptocurrency markets are among the few globally unregulated or manipulated markets, these markets may reflect changes in US dollar liquidity earlier than traditional financial markets. Hayes believes that investors should pay more attention to the policies of US Treasury Secretary Yellen going forward.

Hayes states that Yellen will release a fiscal report on January 31, and there is a high probability that the Bank Term Funding Facility (BTFP) will expire. If this program is not extended, banks will have to repay substantial loans, which could result in reduced US dollar liquidity in the market. However, if market conditions change (such as BTFP extension) or Yellen reveals a significant reduction in funds in the Treasury General Account (TGA), this could bring additional US dollar liquidity to the market. At that time, Hayes will adjust his investment strategy, including closing put options and increasing investments in cryptocurrencies.

(This article is authorized for reprint by GT Radar)

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