Arthur Hayes, co-founder and former CEO of derivatives cryptocurrency trading platform BitMEX, has shifted his stance on Bitcoin from short-term bearish to decidedly bullish, following the cryptocurrency’s recent performance that defied his expectations.

The price of Bitcoin has recently surged to get near its largest winning streak in a near as it closes in on the $50,000 mark. CryptoCompare data shows BTC is currently trading at $48,900 after rising more than 1.6% over the last 24-hour period.

Earlier in the year, Hayes had bet on a short-term dip in Bitcoin’s price by purchasing put options at a $35,000 strike price, anticipating a market correction. However, in a recent interview with Crypto Banter, Hayes expressed his optimism for Bitcoin, predicting it could reach new all-time highs of $70,000 by the end of the year, without foreseeing any significant downturns in the near future.

His initial bearish position was influenced by expectations of financial turmoil, including potential banking stress and the Federal Reserve’s monetary policies. Despite a temporary drop in Bitcoin’s value in March 2023, due to banking instabilities, the cryptocurrency didn’t fall as much as Hayes had anticipated, leading him to close his short position as the costs outweighed the benefits.

Hayes humorously noted that his trading maneuvers were partly aimed at earning extra money for leisure activities, underscoring his long-term confidence in Bitcoin regardless of these short-term speculative efforts.

Additionally, he highlighted concerns about a potential banking crisis, particularly related to commercial real estate loans, suggesting that central banks might respond by injecting significant liquidity into the markets to avert economic collapse.

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