Bitcoin has experienced a volatile period in recent weeks, with concerns about a potential correction below $50,000. However, the cryptocurrency has rebounded, driven in part by expectations of increased liquidity from the Federal Reserve.
Arthur Hayes, the former CEO of BitMEX, initially took a short position on Bitcoin, anticipating a decline. However, he has since closed this position, citing a potential for a Bitcoin rally in the coming weeks.
Hayes believes that the Federal Reserve may inject more liquidity into the market, bolstering investor sentiment and driving up Bitcoin prices. He argues that the current economic weakness and declining financial markets could prompt the Fed to take such action.
Jamie Coutts, chief crypto analyst at Real Vision, emphasizes the importance of the M2 money supply in predicting Bitcoin’s price movements. He believes that a positive year-over-year change in the M2 money supply could signal a shift in investor sentiment and lead to a Bitcoin rally.
September has historically been a volatile month for Bitcoin, with average returns of -4.69%. However, despite the recent downturn, Bitcoin’s performance remains consistent with previous halving cycles.
While Bitcoin has experienced a short-term correction, there are indications that a rebound may be imminent. The potential for increased liquidity from the Federal Reserve and positive shifts in the M2 money supply could fuel a rally.
Investors should remain cautious and monitor market developments closely. The cryptocurrency market remains volatile, and future price movements will depend on various factors, including macroeconomic conditions, regulatory developments, and investor sentiment.
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Author: Sb
This post was originally published on cryptonewsfarm.com
