Bitcoin appears to have found a solid floor near $80,000, signaling a potential rebound for the world’s largest cryptocurrency. Former BitMEX CEO Arthur Hayes suggested last week that this level could hold as liquidity conditions in the U.S. improve. Investors are now closely watching the Federal Reserve’s policy moves, which may create favorable conditions for crypto bulls.
According to Hayes, Bitcoin’s recent decline, which saw the price fall more than 35% from its all-time highs to $80,500, may be nearing its end. In his latest post on X, he predicted a recovery driven by changes in U.S. liquidity. The Fed is expected to conclude its current quantitative tightening phase next month, halting balance sheet shrinkage and adding more liquidity to markets, which could benefit Bitcoin and other cryptocurrencies.
Hayes explained that minor improvements in dollar liquidity, combined with an increase in bank lending during November, set the stage for a potential market lift. He noted that Bitcoin might briefly dip below $90,000, even testing the low $80,000 range, but he remains confident that $80,000 will hold as a support level.
The former executive has consistently maintained a bullish stance on Bitcoin, emphasizing that quantitative easing is necessary for sustained price growth. He also suggested that traditional markets, including AI-focused tech stocks, may need to decline sharply before a broader recovery occurs. Hayes described this as “playing for more money printing,” indicating that central bank actions could directly influence crypto performance.
Market sentiment has shifted rapidly in recent weeks, reflecting uncertainty over the Federal Reserve’s next steps. CME Group’s FedWatch Tool currently shows a 79% probability of a 0.25% rate cut in December, up from 42% just one week ago. Economist Mohamed El-Erian called this volatility “stunning,” highlighting how the Fed’s decisions have become unpredictable amid disrupted economic data and a transitional leadership period.
For Bitcoin, the combination of improved liquidity and potential rate cuts could provide a clear boost. Investors remain cautious, but the crypto community is hopeful that recent lows near the $80,000 mark the beginning of a new upward trend.