Legendary $100 Billion-a-Month Trader Makes Surprise Crypto U-turn After Huge Price Swings for Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon, and Solana

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BitcoinBTC, Ethereum and other major cryptocurrencies suffered a downturn this week as fears swirl over a possible shock US ban.

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Bitcoin’s price, down about 50% from this point last year, has risen 30% since the start of 2023, dubbed a “year of opportunity.” EthereumETH and other top ten cryptocurrencies BNBBNB, XRPXRP, cardano, dogecoin, polygon and solana also rallied, with BXRPinance chief executive Changpeng “CZ” Zhao issuing an “existential” warning.

Now, as the US Federal Reserve wreaks havoc with bitcoin’s price and the crypto market, legendary trader and former BitMex CEO Arthur Hayes has changed his mind about bitcoin’s short-term fortunes, revealing that it will be rolling out bitcoin “over the next few days.”

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“I will be rolling out over the next few days,” Hayes wrote in a blog post, adding that “if bitcoin and ethereum continue to rally, there will definitely be a ‘smaller cryptocurrency rally’ over the course of the week. the next few months”.

Last month, Hayes warned that “risky assets” such as bitcoin, ethereum and tech stocks could “take a beating” in 2023 due to a “disastrous global financial meltdown”.

Last year, the Fed began raising interest rates and shrinking its balance sheet in an attempt to stem soaring inflation. Recent consumer price data has led some to bet that the Fed has already won the war on inflation and will adopt a more dovish stance later this year.

Although the Fed withdraws “100 billion dollars a month [from its balance sheet] which is negative for risk,” Hayes pointed out that the Treasury’s $500 billion “current account” would potentially negate Fed tightening.

“The Treasury will roll the Treasury General Account (TGA) to zero due to reaching the debt ceiling,” Hayes wrote, predicting it is inevitable that Congress will vote to raise the debt ceiling this summer. to avoid a US debt default.

“The TGA will run out mid-year. Immediately after it runs out, there will be a political circus in the United States around raising the debt ceiling,” Hayes wrote. “Given that the Western-led fiduciary financial system would collapse overnight if the U.S. government decided to forego raising the debt ceiling and instead defaulted on the assets that underpin said system, it is safe to assume that the debt ceiling will be raised.”

However, traders should “exit the market” when the “TGA hits zero,” Hayes added.

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Meanwhile, bitcoin, ethereum and crypto prices fell after analyzing the week’s economic headlines.

“Traders and investors continued to reposition after last Friday’s strong jobs data, and Powell’s evasive comments at Tuesday’s Economic Club event did little to change the trend,” wrote market watcher Noelle Acheson in a blog post.

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