Renowned crypto analyst and former BitMEX CEO Arthur Hayes has reiterated his optimistic view on Bitcoin (BTC), saying that the current bull cycle is still in place.
The falling U.S. Treasury General Account (TGA) is a crucial sign of growing liquidity in financial markets, which Hayes said will help Bitcoin’s upward trend in a recent essay.
Bitcoin Worst-Case Scenario: $70,000 Bottom
Amid the ongoing bearish market, Hayes stressed that Bitcoin’s worst-case scenario would be a retest of the previous cycle’s all-time high at $70,000. Notably, the price of Bitcoin has plummeted by 10%, revisiting lows at $83K.
His assurance is based on his conviction that riskier assets like Bitcoin will profit from the U.S. government’s diminishing cash reserves, which will indirectly inject liquidity into financial markets.
Hayes’ study supports his previous predictions, in which he states that rising dollar liquidity would cause the market to peak in March 2025. Traders who keep a careful eye on the macroeconomic variables affecting the price movement of Bitcoin will find resonance in this viewpoint.
Despite his optimism, his approach is still cautious. Hayes said he would be “nibbling on dips” rather than utilizing leverage, implying a methodical strategy for building up Bitcoin amid pullbacks. His strategy reflects an institutional trend in which large investors choose spot purchases over leveraged wagers.
BTC Position and Institutional Confidence
At press time, Bitcoin trades at $83,219, threatening to breach lower levels amid the market-wide sell-off. It continues to be the most popular cryptocurrency, with a current market value of $1.73 trillion.
An article by TheCryptoBasic recently highlighted Fundstrat’s Tom Lee predicting that Bitcoin could surpass $150,000 in 2025, citing increasing institutional adoption. Despite Bitcoin’s February price dip, Lee remains confident that the asset is still on track for major gains.
Lee’s outlook aligns with other analysts, including Bitwise and Standard Chartered, who foresee Bitcoin reaching $200,000 this year.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
