The cryptocurrency market is witnessing an intriguing development with Bitcoin soaring past $87,000, and altcoins beginning to show green signals. Last week marked a challenging period for cryptocurrencies, marred with significant downturns. However, current movements suggest that the weekend’s upward trend may not be a mere trap. It’s still early to celebrate, though. So, what are the expectations of Arthur Hayes?
Bitcoin Surge
Contrary to the typical pattern of decline post-America market openings, Bitcoin (BTC) is exhibiting a notable ascending trend today. At the time of writing, Nasdaq is displaying a robust increase of 2.4%. Movements surpassing 2% in U.S. markets usually signify considerable fluctuations. Nvidia (NVDA) is also trading over $182, continuing its upward trajectory, while Amazon and others are rapidly rebounding.
In summary, Bitcoin’s rise may persist, supported by the stock market, absent any unexpected negative developments. Consolidating $88,000 as a support level and preserving it could pave the way for recovery to the $92,000 and $96,000 regions.
Despite experiencing massive sales, Bitcoin is anticipated to find equilibrium once sellers exhaust their resources. Whether short-term traders capitalize on the rise as a selling opportunity will determine this outcome. Tomorrow, the delayed Producer Price Index (PPI) data will be released, crucial for alleviating inflation concerns.
As this article is being prepared, Trump announced his plans to visit China in April, accepting Xi’s invitation. Their conversation today, apparently positive, included discussions regarding potential peace between Ukraine and Russia.
Arthur Hayes’ Prediction
Arthur Hayes, a well-known figure in the cryptocurrency community, commented today on the improving liquidity and potential for a bullish run. He suggested that those predicting a continued nightmare below $80,000 might be mistaken. Hayes previously forecasted Bitcoin’s drop to $80,000, which proved accurate as the cryptocurrency briefly touched this level.
“There are slight improvements in dollar liquidity.
Fed QT ends on December 1st. U.S. banks increased lending in November.
We might dip to $80,000 once again, but I believe $80,000 will hold. Purchases could gradually resume, but let’s keep the bazooka on standby until the new year.”