News - "Bitcoin may collapse after halving"

By Mike Hesp

"Bitcoin may collapse after halving"

Bitcoin (BTC)
Bull run
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While Bitcoiners eagerly await the halving, one expert warns of corrections for BTC and crypto. Should crypto fans dress warmly?

Both Bitcoin as the entire crypto market will likely come under strong selling pressure in the days before and after the halving. At least that's what BitMEX co-founder Arthur Hayes says in the last post on his blog.

In yesterday's post, April 8, he writes that Bitcoin's halving "will drive prices higher in the medium term," but at the same time he warns that the crypto price trend "could be negative immediately before and after."

The halving of the BTC is actually considered an extremely bullish event in the crypto space, as halving has often ushered in a new cycle of hype in the past, resulting in huge price increases for Bitcoin and other cryptocurrencies.

Hayes is pessimistic, however, at least in the short term, because, "When most market participants agree on a particular outcome, the opposite usually happens." He therefore suspects a price drop for Bitcoin halving.

The second half of April will also be a "precarious time for risky assets," as upcoming U.S. tax payments will drain liquidity and the Fed will begin quantitative tightening, likely reducing the money supply.

Hayes is again positive for the warm season because "summer will bring a renewed wave of fiat liquidity as a result of Fed and Treasury policy." This, in turn, could trigger a boom for Bitcoin and crypto.

His assessment should not tempt investors to sell prematurely. Indeed, the former CEO of BitMEX modestly concludes, "Can the market defy my bearish tendencies and continue to rise? Sure.

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