Hayes believes that Bitcoin has reached a local bottom and anticipates a gradual upward trajectory in the coming months. In a blog post, he remarked that the recent downturn played out as he expected, viewing the 12% retreat as a necessary market cleansing. Despite hitting a low point around $58,600, Hayes predicts a rally that will surpass $60,000, followed by a period of consolidation between $60,000 and $70,000 until August.

Looking ahead, Hayes anticipates a gradual upward trajectory for crypto markets, buoyed by increased dollar liquidity resulting from the Federal Reserve’s quantitative tightening (QT) taper and the U.S. Treasury’s debt issuance plans. The Fed’s tapering of QT effectively injects more liquidity into the market, potentially directing capital towards riskier assets like cryptocurrencies.

Hayes characterizes this phenomenon as “stealth money printing,” a term denoting the covert injection of liquidity into financial markets. He views this liquidity injection as a positive development for high-risk assets like Bitcoin, foreseeing a scenario where the slow addition of liquidity dampens negative price movements and propels prices upward.

Echoing Hayes’s sentiment, Jeff Ross, founder and CEO of Vailshire Capital Management, remains optimistic about the crypto market’s prospects. Despite prevailing uncertainties, Ross maintains faith in the ongoing bullish trend, attributing the Federal Reserve’s “rhetoric pivot” to a transition towards more favorable liquidity conditions.

Analysts and traders alike are closely monitoring Bitcoin’s trajectory, with many predicting a period of consolidation and sideways movement in the near term. However, amidst the volatility, there remains a sense of cautious optimism regarding the long-term outlook for cryptocurrencies.

What factors contributed to Bitcoin’s recent slump? Hayes attributes it to various elements, including the U.S. tax season, concerns over Federal Reserve decisions, the aftermath of the Bitcoin halving event, and a slowdown in spot Bitcoin exchange-traded fund inflows. He notes that this correction marks the fourth similar retracement in the past year, highlighting the volatility inherent in cryptocurrency markets.

One of the key drivers behind Hayes’ forecast is the Federal Reserve’s quantitative tightening (QT) taper and the U.S. Treasury’s debt issuance plans. By tapering QT, the Fed injects more liquidity into the markets, potentially boosting demand for riskier assets like cryptocurrencies. Hayes refers to this phenomenon as “stealth money printing,” suggesting that it could provide a supportive backdrop for Bitcoin’s price action.

In addition to Hayes’ analysis, Jeff Ross, the Founder and CEO of Vailshire Capital Management, shares a similar sentiment regarding the crypto market’s trajectory. Despite the prevailing uncertainty, Ross remains optimistic about the long-term prospects of Bitcoin, characterizing the current phase as an “ongoing bullcrab market.”

Looking ahead, Hayes anticipates a gradual upward trend driven by increased dollar liquidity resulting from the Federal Reserve’s quantitative tightening (QT) taper and the U.S. Treasury’s debt issuance plans. He interprets the Fed’s actions as a form of “stealth money printing,” which could inject more liquidity into riskier assets like cryptocurrencies, providing upward pressure on prices.

Hayes isn’t alone in his assessment of Bitcoin’s future trajectory. Jeff Ross, founder and CEO of Vailshire Capital Management, also remains optimistic, referring to the ongoing market conditions as a “bullcrab market.” Ross sees the Fed’s recent shift in rhetoric as a transition to improved liquidity conditions, further supporting the notion of a gradual uptrend for Bitcoin.

As analysts and traders weigh in on Bitcoin’s prospects, it’s clear that the cryptocurrency market remains highly dynamic and subject to various influences. While recent dips may cause concern, many experts like Hayes and Ross remain optimistic about Bitcoin’s long-term potential. As investors navigate these fluctuations, staying informed and understanding the underlying market dynamics will be key to making informed decisions in the world of cryptocurrencies.