- The BitMEX co-founder said on X that Bitcoin’s rally might be a ‘dead cat bounce’ before the cryptocurrency dips again.
- According to him, Bitcoin’s price has not fully decoupled from U.S. software technology stocks.
- Bitcoin’s price was trading at around $72,400 on Wednesday night, paring gains after hitting an intraday high of nearly $74,000.
Arthur Hayes, BitMEX co-founder and chief investment officer at Maelstrom, said on Wednesday that Bitcoin (BTC) has not yet fully decoupled from U.S. software technology stocks.
“It could be a dead cat bounce,” he wrote on X after Bitcoin’s price nearly touched $74,000. “We aren’t in the clear yet. Be patient.” Hayes has repeatedly theorized that Bitcoin’s next record high will come once the Federal Reserve starts printing more money, whether prompted by a tech-stock crash or the U.S.-Iran war taking a toll on the economy.
Bitcoin Gains Trump Software Stocks
Bitcoin’s price was trading at around $72,400 on Wednesday night, still up 6.2% in the last 24 hours. It rose to nearly $74,000 for the first time since February 4 in intraday trade. Retail sentiment around the apex cryptocurrency on Stocktwits rose to ‘extremely bullish’ from ‘bullish’ over the past day.
Meanwhile, iShares Expanded Tech-Software Sector ETF (IGV) edged 0.10% higher in overnight trade following gains of 1.825 in regular trade. Retail sentiment around the fund on Stocktwits remained in ‘bearish’ territory over the past day.
What Is Retail Saying?
One Stocktwits user suggested a trend reversal may be forming in the software sector and said they are buying up more shares.
Another user was wary of Bitcoin’s rally, warning that BTC’s move could resemble a bull trap similar to the market dynamics seen in 2022.
Bitcoin remains down by 17% year-to-date, while the IGV software ETF is down around 19%. Hayes has a price target of $250,000 on Bitcoin by the end of March, and sees the apex cryptocurrency hitting between $500,000 and $750,000 by the end of the year.
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