Although the 30 %decrease in the crypto currency market worries investors, experts point out that this is a healthy correction. Arthur Hayes, one of the founders of Bitmex, is that the market is in a short -term fluctuation process but Bitcoin until the end of the year $83,100.85He claimed that he could reach higher levels. According to Hayes, speculative beings need to be eliminated in order for the market to re -accelerate. The expansion of the money supply may also affect the prices upward. The current correction process of the market is similar to the past bull cycles.
What does the correction in Bitcoin mean?
Arthur Hayes said that the harsh decreases in the crypto currency market were also seen in the previous bull cycles. According to him, although a 30 %decline seems to be large, it should be considered as a natural movement of the market. The elimination of weak projects after the rise enables the formation of a more solid market structure.
Hayes emphasizes that such corrections in Bitcoin are a healthy part of the bull market in the past. Expressing that the use of excessive leverage and interest in risky assets triggers such fluctuations, the expert, price movements do not break the general trend, he says. According to him, Bitcoin can reach new peaks by the end of the year after this stage.
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According to Hayes, investors should be prepared for big corrections. Looking at the past cycles of the market, it is seen that such decreases took place before every major rise. EXPECTING Bitcoin can reach $ 250,000, the expert thinks that fluctuations should be considered normal to further strengthening the market.
MONEY ASSES
Increasing money supply in the face of increasing economic uncertainties by central banks may be positively reflected in the crypto currency market. Arthur Hayes emphasizes that governments are on the way to print money to provide additional liquidity in economic crises. According to him, as in the past, excess liquidity pumped to the market may cause Bitcoin and other crypto currencies to gain value.
When economic difficulties increase, more money by central banks can lead to loss of value in traditional currencies. This may cause investors to turn to alternative assets. Hayes thinks that Bitcoin can come to the forefront as a powerful value storage tool in this process.
These developments, which investors follow carefully, can create new opportunities in the crypto currency market. However, the high volatility in the market shows that investment decisions should be careful. One of the most important factors to determine the future of the market is how to shape macroeconomic developments.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
