Arthur Hayes views Bitcoin’s recent rebound past $93,000 as the start of an enduring rise, separating it from stock correlations. He argues that Bitcoin is solidifying its position as a digital store of value, akin to gold, and suggests potential price ceilings nearing $200,000. Analysts note Bitcoin’s ability to act as a portfolio diversifier amid a broader market recovery.
Arthur Hayes, co-founder of BitMEX, has praised Bitcoin’s recent price recovery, indicating it signifies the beginning of an “up only” era, akin to gold. He asserts Bitcoin’s decline to $74,500 represented its lowest point, predicting it will rise significantly, no longer tethered to technology stocks.
On Wednesday, Bitcoin’s price surged past $93,000, reflecting a 25% increase from March lows, coinciding with improvements in the broader market following signals of renewed trade discussions between the US and China. Hayes emphasises that Bitcoin’s decoupling from equities marks a critical transformation in its role as a digital asset.
Historically viewed as a ‘risk-on’ asset alongside stocks, Bitcoin is now being positioned as a viable store of value. Hayes argues that current investors are looking for alternatives to traditional investments that align with anti-establishment sentiments, for which Bitcoin serves the digital alternative to gold.
As gold trades at $3,300 per ounce, having risen 43% over the past year, the shift in Bitcoin’s dynamics is welcomed by cryptocurrency advocates who long sought this change. Despite remaining in its early phase of decoupling, analysts have noted Bitcoin’s surprising performance against the Nasdaq during economic disruptions.
Hayes forecasts Bitcoin could approach prices near $200,000, contrasting with his initial prediction of $250,000 for this year. Other analysts, including Zach Pandl from Grayscale, demonstrate optimism, asserting that Bitcoin’s recent performance underscores its value as a portfolio diversifier.
Currently, Bitcoin is trading at $93,721, representing a 6% increase in the past day, while Ethereum has also increased by 10.8% to $1,813.
