Bitcoin has recently stabilized after dipping to approximately $80,000 last week, as stated by Arthur Hayes, the ex-CEO of BitMEX.

Key Insights:

• Hayes believes that the recent low is a solid support position for Bitcoin.
• Upcoming liquidity conditions are expected to favor the crypto bulls with the impending end of quantitative tightening (QT) from the US Federal Reserve.
• Current discussions around potential interest rate cuts from the Fed are proving to be unpredictable.

Hayes highlighted that Bitcoin (BTC) should keep its support at the $80,000 mark amid transformations in US liquidity favorable to cryptocurrency investors. In his latest updates on X, Hayes forecasted that the price recovery trend for Bitcoin is imminent.

Hayes on BTC Pricing: “I believe $80,000 will remain”

Despite a more than 35% drop from previous highs, Hayes is confident that the critical support level of $80,500 is secure. He attributes this optimism to shifts in US liquidity. The Federal Reserve is expected to cease its current QT next month, allowing for an influx of liquidity beneficial to cryptocurrencies and other high-risk investments.

“Minor improvements in $ liq,” he noted.

He anticipates that the Fed’s balance sheet will stabilize shortly, suggesting increased bank lending activity this November, which could trigger a widespread upward trend for Bitcoin and altcoins.

“We may push below $90k briefly, perhaps dipping into the low $80k range, but I believe that $80k holds,” concluded Hayes.

The ex-BitMEX leader has maintained a positive outlook, continuously stressing the necessity for quantitative easing to alleviate price pressures for Bitcoin.

BTC/USD Chart
BTC/USD four-hour chart. Source: Cointelegraph/TradingView

Recent shifts in market expectations regarding Fed policy have led to significant fluctuations amid the U.S. government shutdown. These have raised the odds of a potential interest rate cut at the December Fed meeting to about 79%, a jump from 42% just a week prior.

In professional spaces, economist Mohamed El-Erian described the volatility as “stunning.” El-Erian stated that this was reflective of a failure in predictability and stability usually maintained by the Fed.

“Such volatility arises from disrupted data due to shutdowns and an unclear strategic approach from the Fed.

Note: This article does not offer any investment advice. All financial decisions should be approached with caution.