Arthur Hayes, co-founder of BitMEX, is cautioning that Bitcoin (BTC) is facing considerable challenges this month due to uncertainties in the US market.
In a recent interview on the Crypto Banter YouTube channel, Hayes notes that the tariffs announced by US President Donald Trump on April 2nd may have lasting effects on the market this month, following a significant stock sell-off.
“April is set to be a difficult month. We are grappling with tariff implications. The market still perceives Bitcoin as a direct reflection of the Nasdaq. Consequently, there is growing concern over US Big Tech, leading to declines.
People are concluding, ‘If the Nasdaq is falling, Bitcoin will too.’ I believe Bitcoin will begin to behave more like gold, but the market will take some time to shake off this correlation with the Nasdaq.”
He also mentions that there could be significant price fluctuations around April 15th, which is tax day in the United States, as some investors may sell assets to cover their tax obligations.
“With taxes due on April 15th, this creates a liquidity-straining situation in the United States because individuals will need to liquidate assets to settle their tax bills.”
Hayes highlights that another aspect potentially influencing Bitcoin this month is the Treasury’s monetary policy, which could impact market liquidity. Historically, Bitcoin tends to surge when market liquidity increases.
“It’s uncertain whether the Treasury plans to replenish its cash reserves…
Once the debt ceiling issue is addressed—and it will be—the key question is whether the Treasury will opt to issue more bonds, reducing liquidity in the market while boosting its cash balance to around $700 or $800 billion. We will have clarity on this in early May with the Treasury’s quarterly refunding announcement regarding their cash balance targets.”
Finally, Hayes suggests that Bitcoin may begin to rally again if it can maintain support at $76,500 throughout the volatility of this month.
“April is bound to bring a significant amount of uncertainty. There’s widespread tariff anxiety and fears of a global recession, alongside changes in the monetary framework. This will likely result in a volatile, potentially declining month. I hope that the $76,500 support holds, and I believe it can, but we might come close to testing that level.”
As of now, Bitcoin is trading at $84,014, reflecting a 1.7% increase in the past 24 hours.
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Disclaimer: The views expressed in The Daily Hodl do not constitute investment advice. Investors should conduct thorough research before engaging in any high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and trades are your own responsibility, including any losses incurred. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets and is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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