The leading cryptocurrency is expected to drop below $40,000, with the decline continuing until January 31, when the US Treasury announces its quarterly borrowing plan. This forecast was made by former BitMEX CEO Arthur Hayes.
$BTC looks mad heavy. I think we break $40k. I went long some 29Mar $35k strike puts. I think we dump into the 31Jan US Treasury qtly refunding annc. Is Janet Yellen or Talkin’? pic.twitter.com/lyjqNmldzh
— Arthur Hayes (@CryptoHayes) January 22, 2024
“Bitcoin looks mad heavy,” he commented.
To implement his strategy, the expert purchased March put options with a strike price of $35,000.
Hayes explained his position by pointing to deteriorating liquidity in the financial system.
Y has $SPX and $BTC stopped moving up together post US BTC ETF launch?
Both are love more $ liq, which one is right about the future?$BTC is telling us that there are hiccups ahead for $ liq, next signpost is 31st Jan US Treasury refunding annc. pic.twitter.com/CSDvFp4QKu
— Arthur Hayes (@CryptoHayes) January 22, 2024
“Why have SPX [S&P 500] and Bitcoin stopped rising together after the US ETF launch? Both assets love liquidity inflows. Which one is right about the future? Digital gold is telling us there are problems ahead. The next signpost is January 31, when the US Treasury announces its borrowing plans,” explained the former BitMEX CEO.
MN Trading founder Michaël van de Poppe described the correction as “normal” and urged buying during dips.
If you start to feel uncertain about the markets right now, after a correction of 20%, then that should be your confirmation to get in the markets.
If you were as confident during the ETF launch to buy, then you should be more interested to buy your #Bitcoin now at a discount.
— Michaël van de Poppe (@CryptoMichNL) January 21, 2024
“If you start to feel uncertain about the markets right now, after a correction of 20%, then that should be your confirmation to get in the markets. If you were as confident during the ETF launch to buy, then you should be more interested to buy your Bitcoin now at a discount,” he noted.
Analysts at CryptoQuant highlighted the “awakening” of “old” coins.
Old #Bitcoin is moving.
Someone(s) broke an old piggy bank and distributed its contents, likely through OTC deals.
The average dormancy of $BTC reached a five-year high just a few days ago.https://t.co/Q5K2bHFRGB pic.twitter.com/cBrrCL6KtF
— Ki Young Ju (@ki_young_ju) January 22, 2024
“Someone broke an old piggy bank and distributed its contents, likely through OTC deals,” the specialists explained.
They also pointed out the importance of the psychological mark of $42,000, the price at which the first frenzied Bitcoin ETF purchases occurred.
We need to remember that the entry price for these #Bitcoin spot ETF buyers is around $42K.
You will thank me in 2 years. pic.twitter.com/JJwD8n5sEa
— Ki Young Ju (@ki_young_ju) January 20, 2024
Recently, Galaxy Digital CEO Mike Novogratz downplayed the impact of GBTC sales on the prospects of digital gold.
Earlier, several experts noted the price’s dependence on the wave of position liquidations in Grayscale’s exchange-traded fund.
Back in January, Hayes warned of a 20-30% Bitcoin correction due to declining dollar liquidity.