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BitMEX co-founder and prominent crypto essayist Arthur Hayes is cautiously optimistic that Bitcoin may have finally found its local bottom.
The fact that the flagship cryptocurrency is decoupling from traditional tech equities is an encouraging sign, according to Hayes.
Macro fears and the SaaS decoupling
In his social media post, Hayes stressed that Bitcoin is not out of the woods yet. He has singled out such factors as the AI destruction of knowledge workers, as well as a looming financial crisis, as strong headwinds.
However, despite the doom and gloom, Hayes offered a massive silver lining: "But maybe $BTC is breaking out against US SaaS software and we bottomed?"
During the previous relief rally, Hayes urged bulls to keep their celebrations to a minimum, warning of a potential dead cat bounce. His rationale was that Bitcoin was still moving in lockstep with U.S. SaaS (Software as a Service) tech companies.
Bitcoin, which has been championed as digital gold, was instead trading like a high-beta tech stock. Given that software equities were influenced by macroeconomic factors, Bitcoin was guaranteed to follow them due to the persistent correlation.
Now, according to Hayes, Bitcoin seems to be trading independently of the tech stock sector.
A multi-week high
After printing a towering peak near $76,000 in mid-March, Bitcoin faced a sudden rejection. It was bleeding out over the following weeks to establish a local bottom near the $65,000 support zone.
Since the beginning of April, the bulls have been steadily reclaiming lost ground.
The flagship cryptocurrency recently reclaimed the $76,000 level, and it is currently trading at $74,986 on the Bitstamp exchange.
Dan Burgin
U.Today Editorial Team
