Arthur Hayes predicts Bitcoin will experience a gradual ascent after reaching its lowest point.

Former BitMEX CEO, Arthur Hayes, is optimistic about Bitcoin’s future, stating that it has reached a local bottom and will gradually rise in the coming months. In a recent blog post, Hayes discussed the recent market decline and expressed satisfaction with how the price action unfolded. Bitcoin experienced a low of around $58,600 but is expected to rally above $60,000 and then trade within the range of $60,000 to $70,000 until August. Hayes attributed the 12% retreat to factors such as the US tax season, concerns over Federal Reserve decisions, the Bitcoin halving event, and a decrease in spot Bitcoin exchange-traded fund inflows. He referred to the correction as a necessary market cleansing and noted that it was the fourth similar retrace in the past year. Hayes anticipates that the crypto market will gradually recover due to increased dollar liquidity resulting from the Federal Reserve’s quantitative tightening taper and the US Treasury’s debt issuance plans. The injection of liquidity into the market could potentially lead to increased investment in riskier assets like cryptocurrencies. Hayes sees this as a form of “stealth money printing” that benefits high-risk assets. He believes that the slow addition of liquidity each month will mitigate negative price movements and expects prices to stabilize, consolidate, and eventually rise. Other experts share a similar outlook, with some predicting a sideways market in the coming months. Jeff Ross, Founder and CEO of Vailshire Capital Management, remains optimistic about the ongoing bull market despite the pessimistic sentiment. He views the Fed’s “rhetoric pivot” as a transition to more favorable liquidity conditions. MatrixPort, an institutional crypto brokerage, also supports the belief that Bitcoin tends to trade sideways for several months after a halving event. At the time of writing, Bitcoin’s price had recovered 4.2% to reach $59,804, but it was still down 19% from its all-time high in mid-March.