Arthur Hayes predicts Bitcoin’s ascent will be a gradual and steady climb after hitting its lowest point.

Arthur Hayes, the former CEO of BitMEX, has expressed his belief that Bitcoin has reached a local bottom and will gradually rise over the next few months. In a recent blog post, Hayes discussed the recent market slump and stated that it played out as he had anticipated. Bitcoin experienced a low point of around $58,600 earlier this week but Hayes predicts that it will rebound above $60,000 and then trade within a range of $60,000 to $70,000 until August. He described the 12% retreat in Bitcoin’s price this week as a necessary market cleansing. Hayes attributed the slump to factors such as the US tax season, concerns over Federal Reserve decisions, the Bitcoin halving event, and a slowdown in spot Bitcoin exchange-traded fund inflows. This correction of 23% marks the fourth similar retraction in the past year. Hayes expects the crypto markets to gradually rise following the recent sell-off, driven by increased dollar liquidity resulting from the Federal Reserve’s quantitative tightening taper and the US Treasury’s debt issuance plans. He views this as “stealth money printing,” which he believes will have a positive impact on high-risk assets such as cryptocurrencies. Hayes anticipates that the slow injection of billions of dollars into the market each month will mitigate negative price movements and lead to a bottoming out, followed by a slow upward trend. Other experts, such as Jeff Ross, the Founder and CEO of Vailshire Capital Management, also predict a sideways market in the coming months. Ross believes that the Federal Reserve’s “rhetoric pivot” signifies a transition from bad to less-bad liquidity conditions. MatrixPort, an institutional crypto brokerage, echoes this outlook, stating that Bitcoin typically moves sideways for four to five months after a halving event. As of the time of writing, Bitcoin’s price has recovered by 4.2% to trade at $59,804, but it remains down 19% from its all-time high in mid-March.