In a recent analysis, crypto veteran Arthur Hayes has forecasted that Bitcoin could experience a decline below the $80,000 mark. Despite this potential dip, Hayes believes that the $80,000 level will serve as a crucial support point.
Hayes noted that current macro liquidity indicators are showing signs of improvement, which could have a positive impact on Bitcoin prices in the long run. He highlighted two significant developments contributing to this optimism: the U.S. Federal Reserve”s upcoming halt of quantitative tightening (QT) on December 1 and an increase in lending activities by U.S. banks during November.
According to Hayes, while he anticipates some short-term volatility where Bitcoin may fall into the low $80,000 range, he remains confident that this level will provide the necessary support for a rebound. He commented on social media, suggesting that even if the price dips further, he might begin accumulating positions but will hold off on larger investments until the new year.
Adding to the narrative, data from Swissblock indicates that the selling pressure on Bitcoin might be nearing its peak, suggesting that the most intense selling phase may have passed. This could indicate a shift in market dynamics, potentially paving the way for increased buying momentum.
Despite the cautious outlook, there are signs of renewed interest in the market. Reports from CoinShares reveal that digital asset investment products saw outflows of $1.94 billion last week, with Bitcoin alone accounting for $1.27 billion of that figure. Interestingly, there was a partial reversal on Friday, highlighting ongoing fluctuations in market sentiment.
With the Federal Reserve”s impending policy changes and improvements in bank lending, the landscape for risk-on assets like Bitcoin and other digital currencies may be poised for a recovery as liquidity conditions improve. Investors will be watching closely to see how these factors play out in the coming weeks.
