Mike Hayes, a well-known crypto expert, shared his insights on the next Bitcoin rally and the role central banks might play under economic instability.
Economic Instability and Bitcoin
Hayes believes central banks will resume using quantitative easing methods to cope with growing economic pressures. He compared the current situation to late 2022 when markets began to rally amid easing conditions, with Bitcoin rising sixfold after trillions of dollars were injected into the financial system.
Future Predictions for Bitcoin
With Scott Bessent now appointed to the U.S. Treasury, Hayes expects a similar playbook involving massive liquidity injections to soften volatility and restore market confidence. He pointed to April 9 as a potential inflection point that could mark the beginning of a new crypto surge.
Bitcoin Dominance and Alternative Assets
Hayes also noted that as Bitcoin approaches the $150,000 level, capital is likely to rotate out of Bitcoin into alternative digital assets, reducing Bitcoin's dominance in the market. Currently, Bitcoin's dominance in total crypto market capitalization stands at around 65%, which could rise to 70% before altcoins reclaim the spotlight.
Hayes's conclusions highlight the potential shifts in market sentiment driven by central bank actions and economic factors, which could lead to significant changes in capital distribution.
