Arthur Hayes Cautions Against Buying Bitcoin Until March: Here’s Why
Influential former BitMEX CEO Arthur Hayes published a new market outlook this week, cautioning against the blossoming optimism behind a U.S. spot Bitcoin ETF.
Hayes stated that this optimism could fuel overheating and a sharp comedown. He warned that anticipatory inflows may propel 40%+ drawdowns from potential $70,000+ peaks.
Key Details:
- Hayes sees a possible run to $60-70K on ETF hype, then a pullback after launch.
- Hayes says that if hundreds of billions of dollars flood approved funds, unsustainable euphoria may form.
- Warns that a “dollar liquidity rug pull” could spark a 30–40% plunge.
- Hayes is personally waiting until after expected March approvals before buying.
Read more: North Korean Hackers Looted Over $600,000,000 In Crypto In 2023: Report
Hayes expects a slump after spot Bitcoin ETF approval
Hayes emphasized the potential for unprecedented asset inflows following the initial SEC approval of pending spot Bitcoin ETF applications. However, he also expressed concern that if prices anticipate speculative future buying in the hundreds of billions before actual funds are deployed, it could create conditions for a challenging market downturn.
The BitMEX co-founder sees Bitcoin at peak risk of running into this dynamic. “I could easily see a 30% to 40% correction due to a dollar liquidity rug pull,” Hayes wrote. “This is why I cannot buy Bitcoin until these March decision dates have passed.”
The analysis examines market sentiment as the SEC decision approaches, with indications suggesting a likely approval. Nonetheless, Hayes maintains a portfolio heavily weighted with over 70% exposure to Bitcoin and Ethereum.
Read more: VanEck Pledges 5% Of Bitcoin ETF Profits For Developers
His blog post comes at a time when the market is responding quickly to any kind of Bitcoin ETF news. The Matrxiport report had triggered a 7% global crypto market slump. However, the positivity revolving around Bitcoin ETFs in the past two days has caused the market to slightly recover.
If you are new and puzzled by all the hype about Bitcoin ETFs, check out this dedicated ETF section. We explain everything you need to know about these ETFs and the latest companies to join the bandwagon with their applications.
