Bitcoin’s momentum weakened in September, with the leading digital asset struggling to maintain levels above $60k. Arthur Hayes, the Co-Founder of BitMEX and Chief Investment Officer at VC fund Maelstrom, has shared his prediction that Bitcoin could see a further decline and drop below $50k during the upcoming weekend.
“$BTC is showing signs of weakness, I anticipate a move below $50k this weekend. I have initiated a short position.”
Possible Continued Losses for Bitcoin in the Short Term
Earlier this week, Hayes expressed a bearish sentiment towards Bitcoin in the short term, suggesting that the anticipated Federal Reserve rate adjustments might not positively impact crypto markets. This view came just as speculation ramped up regarding potential 0.25% and 0.50% cuts in Fed rates ahead of the U.S jobs report.
Hayes argued that the U.S financial system is currently experiencing tightening liquidity, with institutional investors favoring the Fed’s RRP for better yields instead of venturing into risky assets like Bitcoin. This shift in investor behavior could lead to decreased liquidity, potentially resulting in lower Bitcoin prices despite potential Fed rate cuts, he elaborated.
It’s important to note that the demand for Bitcoin has significantly dwindled since Q1. Data from CryptoQuant indicates that investor interest has hit record lows, further dampening the cryptocurrency’s value.
Meanwhile, Peter Brandt has suggested that Bitcoin may witness more sell-offs compared to buying, citing the current megaphone pattern on the price chart. In a pessimistic scenario, Brandt projected a drop to as low as $46k for Bitcoin.
Conversely, some market experts maintain a bullish long-term outlook. Gracy Chen, the CEO of Bitget cryptocurrency exchange, shared a positive perspective, suggesting that the September downturn could be the “last drop” before a potential rally for Bitcoin in Q4 and 2025.
“The recent market correction in early September is often referred to as the ‘last drop,’ with prices expected to reach new highs by the end of the year. Several analysts hold an optimistic view on Bitcoin’s price trajectory for Q4 2024.”
Looking ahead, Chen forecasted that Bitcoin might surge past $100k by November.
“In a scenario devoid of unforeseen events, Bitcoin has the potential to break through $100,000 by November, witness a correction, and then strive towards the $200,000 mark.”
At the time of writing, Bitcoin was trading at $56.4k as the market awaited the U.S jobs report.