Bitcoin enthusiasts have reason to be optimistic as BitMEX co-founder Arthur Hayes declares that the cryptocurrency has bottomed out at $58,600. This prediction comes on the heels of a significant move by the Bitcoin whale known as “Mr. 100,” who has made his first purchase since the Bitcoin halving. Hayes attributes the recent slump to factors like the US tax season and investor reactions post-halving but believes the tide is turning. With US policies injecting billions into the economy, Hayes anticipates a slow but steady rise in Bitcoin prices, potentially rallying past $60,000 and stabilizing between $60,000 and $70,000.

Arthur Hayes' Insight on Bitcoin's Bottom

In a recent blog post, Arthur Hayes, co-founder of BitMEX, shared his insights on the current state of Bitcoin. According to Hayes, Bitcoin hit its bottom at $58,600 earlier this week and is poised for a gradual upward trend. He attributes the recent downturn to several factors, including the US tax season, concerns over Federal Reserve policy decisions, and investors selling off their holdings after the Bitcoin halving event.

Hayes also pointed out that inflows into US spot Bitcoin exchange-traded funds (ETFs) have slowed down considerably, contributing to the recent price slump. However, he remains optimistic about the future, citing ongoing US policies that inject billions of dollars of liquidity into the market every month.

"Mayday" is a brief discussion on the recent Fed, US Treasury, and bank bailout policies. It's money printing disguised. As such, I'm re-entering the market with super shitty shitcoins. The Hat Stays On!https://t.co/XmBpQqzBx9 pic.twitter.com/1SkIqZm5xk — Arthur Hayes (@CryptoHayes) May 2, 2024

The Impact of US Monetary Policies

Hayes believes that the continuous injection of liquidity by US policies will eventually lead to a rise in crypto prices. He stated, “While I don’t expect crypto to fully realize the recent US monetary announcements’ inflationary nature immediately, I expect prices to bottom, chop, and begin a slow grind higher.”

He predicts that Bitcoin will rally past $60,000 and then trade within a range of $60,000 to $70,000 until August. So far, his prediction seems to be on track, with Bitcoin trading up 5% at $61,739 as of 10:40 a.m. EST.

Bitcoin Whale Mr. 100 Buys the Dip

One of the most significant indicators of a potential Bitcoin rally is the activity of Bitcoin whales. The Bitcoin whale known as “Mr. 100” has made headlines by purchasing over $242 million worth of Bitcoin at the $58,000 mark. This is the first time the wallet has purchased Bitcoin since the halving event on April 20.

The address had been consistently buying at least 100 BTC on an almost daily basis since February 14, but the sequence halted after the halving. According to Bitinfocharts, the Bitcoin whale now holds more than 65,356 BTC, purchased at an average price of $36,572 per coin. At the current price, the Bitcoin stash is worth over $3.87 billion.

Factors Contributing to Bitcoin's Recent Slump

US Tax Season

One of the primary factors contributing to Bitcoin's recent slump is the US tax season. Many investors sell off their holdings to cover their tax liabilities, leading to increased selling pressure and a subsequent drop in prices.

Federal Reserve Policy Decisions

Concerns over Federal Reserve policy decisions have also played a role in the recent downturn. Investors are closely watching the Fed's actions, particularly regarding interest rates and monetary policy, as these can have a significant impact on the crypto market.

Post-Halving Investor Reactions

The Bitcoin halving event, which took place on April 20, led to a significant amount of selling pressure as investors reacted to the reduced block rewards. This selling pressure contributed to the recent price slump, but Hayes believes that the market is now poised for a recovery.

The Future of Bitcoin: A Slow Grind Higher

Despite the recent slump, Hayes remains optimistic about the future of Bitcoin. He believes that the continuous injection of liquidity by US policies will eventually lead to a rise in crypto prices. While he doesn't expect an immediate realization of the inflationary nature of recent US monetary announcements, he anticipates that prices will bottom out, chop around, and then begin a slow grind higher.

Hayes predicts that Bitcoin will rally past $60,000 and then trade within a range of $60,000 to $70,000 until August. This prediction is already showing signs of coming true, with Bitcoin trading up 5% at $61,739 as of 10:40 a.m. EST.

The Significance of Mr. 100's Purchase

The recent purchase by Bitcoin whale Mr. 100 is a significant indicator of a potential rally. The whale's decision to buy over $242 million worth of Bitcoin at the $58,000 mark suggests confidence in the cryptocurrency's future prospects. This purchase is particularly noteworthy as it is the first time the wallet has purchased Bitcoin since the halving event.

The whale's consistent buying activity prior to the halving, coupled with this recent purchase, indicates a strong belief in Bitcoin's long-term value. With over 65,356 BTC now held in the wallet, purchased at an average price of $36,572 per coin, the whale's holdings are worth over $3.87 billion at the current price.

The Broader Crypto Market Outlook

Standard Chartered's Prediction

While Hayes remains optimistic about Bitcoin's future, not all analysts share his positive outlook. Standard Chartered has predicted that the Bitcoin price might plunge to $50,000 due to BTC ETF outflows and macroeconomic factors. This prediction highlights the uncertainty and volatility that continue to characterize the crypto market.

European Banking Giant BNP Paribas Ventures into Bitcoin ETF Investment

In a move that underscores the growing institutional interest in Bitcoin, European banking giant BNP Paribas has ventured into Bitcoin ETF investment. This development is a positive sign for the crypto market, as increased institutional participation can provide additional liquidity and stability.

Altcoins to Consider During a Crypto Market Downturn

For investors looking to diversify their portfolios during a crypto market downturn, several altcoins are worth considering. These include:

1. Ethereum (ETH): As the second-largest cryptocurrency by market capitalization, Ethereum continues to be a popular choice among investors. Its upcoming transition to Ethereum 2.0 and the increasing adoption of decentralized applications (dApps) make it a strong contender.

2. Cardano (ADA): Known for its focus on scalability and sustainability, Cardano has gained significant traction in the crypto community. Its ongoing development and partnerships position it as a promising altcoin.

3. Polkadot (DOT): With its unique approach to interoperability and scalability, Polkadot has emerged as a popular choice among investors. Its ability to connect multiple blockchains and facilitate cross-chain communication makes it a valuable asset.

4. Solana (SOL): Solana's high throughput and low transaction fees have made