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GLOBAL MARKETS – Arthur Hayes, co-founder of BitMEX, has positioned himself for a potential decline in the value of bitcoin, purchasing puts at a strike price of $35,000, which expire on March 29. The move reflects its anticipation of market volatility and upcoming tax news that could influence the price of the cryptocurrency.
Bitcoin has recently shown divergence from its usual correlation with the index, as we saw on January 31. This decoupling could signal liquidity concerns ahead of major financial announcements, adding to uncertainty surrounding the trajectory of the digital currency.
Despite the end of the Bitcoin Trust Fund Program (BTFP) on March 12, which is expected to require adjustments in the market, Hayes predicts a possible rise for bitcoin after the Federal Reserve’s interest rate decision on March 20. He suggests that bitcoin could benefit from being seen as a neutral reserve asset, ostensibly insulated from problems plaguing the banking sector.
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