GLOBAL MARKETS - BitMEX co-founder Arthur Hayes has positioned himself for a potential decline in Bitcoin's value, purchasing put options with a strike price of $35,000 set to expire on March 29. This move reflects his anticipation of market volatility and forthcoming fiscal disclosures that could influence the cryptocurrency's price.
Bitcoin has recently exhibited a divergence from its typically observed correlation with the S&P 500 index, as noted on January 31. This decoupling could signal liquidity challenges ahead of major financial announcements, adding to the uncertainty surrounding the digital currency's trajectory.
Despite the termination of the Bitcoin Trust Fund Program (BTFP) on March 12, which is expected to necessitate market adjustments, Hayes predicts a possible upswing for Bitcoin following the Federal Reserve's interest rate decision on March 20. He suggests that Bitcoin could benefit from being perceived as a neutral reserve asset, ostensibly insulated from the issues plaguing the banking sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.