Bitcoin Could Accelerate Over $250,000 By December, Arthur Hayes Goes Mega Bullish ⋆ ZyCrypto

BitMEX co-founder Arthur Hayes believes the crypto market could record a major upward swing, tapping new all-time highs. On the flip side, current institutional pressures have fueled fear, leaving traders in a state of extreme panic.

Low Liquidity Behind Bitcoins Woes

In a new article, the crypto executive blamed plunging dollar liquidity for the digital asset market crash. Hayes noted that basic fundamentals and on-chain factors remain unchanged, although prices took a hit.

Buttressing the contraction in USD liquidity, the index has dropped 10% since April 9, while BTC has jumped 12%. The scenario becomes dicey because, since the start of declining liquidity, Bitcoin has continued to rise due to heavy institutional accumulation.

Hayes explained that the state of play is over and inconsistent, leading to a crash in Bitcoin price to reflect the contracted liquidity. The effect of these outflows could take prices below $80k in the near term. Bitcoin briefly dropped below the $85k market but trades around $87,598 at the time of writing.

However, a bullish case appears for the top crypto by market cap as fundamentals remain strong. According to Hayes, Bitcoin price could bounce toward $200,000 or $250,000 this year despite recent struggles.

Aside from increased liquidity, macro factors are notable in souring bull runs. The United States remains firm behind the market with policies backing investment amid weekly outflows. A slash in policy rates could become the deciding factor to attract the needed funds into crypto products.

As expected, a turnaround in institutional demand in both Bitcoin ETFs and corporate holders will spark a new surge. The height of this years bull cycle saw heavy weekly inflows as firms turned to Bitcoin and other assets on their balance sheet.

Another possibility of a rebound comes as the S&P 500 and Nasdaq 100 indices are around all-time highs, while crypto assets struggle. Recent institutional appetite caused a deeper correlation between the two markets.