Prominent crypto trader Arthur Hayes looks at the falling price of Bitcoin (BTC) following the launch of the Bitcoin exchange-traded fund (ETF) only two weeks ago, as a “cautionary sign.”
He highlights the correlation between Bitcoin reaching its recent peak and the 2-year US treasury hitting a local low of 4.14% this month, which is currently showing a gradual increase.
Arthur Hayes Short-Term Prediction of Bitcoin Price
In a recent blog post, Hayes refutes the common argument that the reason for Bitcoin’s recent price slump is due to the outflows of the Grayscale Bitcoin Trust (GBTC).
“That argument is bogus because when you net the outflows from GBTC against the inflows into the newly listed spot Bitcoin ETFs, the result is, as of January 22nd, a net inflow of $820 million.”
Meanwhile, BeInCrypto recently reported that since the approval of spot Bitcoin ETFs, Grayscale has seen more than $3.3 billion in outflows.
Yet, he highlights the Bank Term Funding Program (BTFP) potentially not getting renewed as an explanation for this investor sentiment.
The US government established the BFTP as an initiative to guarantee that banks maintain sufficient liquidity to fulfill the needs of businesses and households. This is particularly important in case of a substantial volume of withdrawals within a short timeframe.
Read more: Bitcoin Price Prediction 2024/2025/2030
The BTFP renewal decision is set for March 12. Hayes expects Bitcoin’s price to keep decreasing until the decision is disclosed.
However, he foresees a reversal in the trend after the expected decision, anticipating a rise in Bitcoin’s price post-announcement.
“As the SPX and NDX dump due to a mini financial crisis in March, Bitcoin will rise as it will front-run the event
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Author: Ciaran Lyons
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