Key Points
- Arthur Hayes predicts Bitcoin (BTC) could drop below $50k in the near term due to market conditions.
- Bitget CEO Gracy Chen maintains a long-term bullish outlook, expecting BTC to surpass $100k by November.
Bitcoin’s [BTC](https://coineagle.com/price/bitcoin/) recent struggle below $60k has led to predictions of further decline. Arthur Hayes, Co-Founder of BitMEX and CIO at VC fund Maelstrom, believes BTC could dip below $50k over the weekend.
Short-Term Losses for BTC?
Hayes had earlier made a bearish prediction for BTC in the short term. He argued that the anticipated Fed rate cuts would not rally the crypto markets. This prediction came before interest rate traders increased bets on a 0.25% and 0.50% Fed rate cut.
According to Hayes, U.S liquidity is being squeezed as financial institutions opt for the Fed’s RRP (reverse repurchase agreement) for higher yields, rather than risky assets like Bitcoin. This could result in net negative liquidity, potentially lowering BTC prices despite possible Fed rate cuts.
Long-Term Bullish Outlook
Despite the short-term bearish predictions, some market insiders are optimistic about Bitcoin’s long-term prospects. Gracy Chen, CEO of crypto exchange Bitget, believes that the recent losses are the last before a potential BTC rally in Q4 and 2025.
Chen is optimistic about Bitcoin’s price outlook for Q4 2024 and anticipates BTC breaking through the $100,000 threshold by November 2021. This prediction is based on the absence of any unforeseen market disruptions.
As of now, BTC is valued at $56.4k, with traders and investors eagerly awaiting the U.S Jobs report.
