Arthur Hayes predicts BTC halving will ignite a fierce crypto asset firesale.

BitMEX co-founder Arthur Hayes predicts that the upcoming Bitcoin halving, combined with the actions of the Federal Reserve and Treasury, will have a negative impact on the crypto market for several weeks. In a blog post on April 8, Hayes expressed his belief that while the halving may boost prices in the medium term, prices could be negative before and after the event. He also noted that the halving is happening at a time when dollar liquidity is tighter than usual, and outlined how the policies of the Federal Reserve and Treasury impact the markets. Hayes acknowledged that the market could defy his bearish expectations and continue to rise, but he personally remains bullish on crypto. He highlighted that the second half of April will be a precarious period for risky assets due to U.S. tax payments, Quantitative Tightening by the Fed, and the Treasury’s General Account. Hayes expects the Fed to reduce the pace of money supply tightening after May 1, and for the Treasury to release additional liquidity into the system. As a result, he has decided to abstain from trading until May. Bitcoin has seen a significant increase in price this year, rising from around $42,200 to $71,170. The Crypto Fear & Greed Index has also climbed during this time, indicating a sentiment of “Greed” in the market. Hayes stated that if the liquidity scenarios he theorized come true, he would have more confidence to invest in various cryptocurrencies. However, he emphasized the importance of protecting his portfolio and lifestyle by avoiding losses.