Bitcoin Braces for Possible 20-40% Correction in Early March Before Rebounding, Says Arthur Hayes
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Arthur Hayes predicts a 20-40% Bitcoin price correction in early March due to reduced US dollar liquidity when a Fed liquidity program ends.
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The correction could be worse if anticipated spot Bitcoin ETFs have started trading, bringing more fiat into Bitcoin.
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Hayes says a banking crisis from the liquidity reduction could force the Fed to cut rates and extend liquidity programs.
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Bitcoin would decline at first but rebound quickly since it's a neutral currency not tied to the banking system.
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Hayes says the Fed always reacts with liquidity injections when markets get bad, so Bitcoin would rise into the Fed meeting.