- Arthur Hayes predicts that Bitcoin (BTC) could fall below $50,000 amid market turmoil.
- Bitcoin price drop causes $36.71 million in liquidations
- Crypto Fear & Greed Index shows “extreme fear”, reflecting growing market anxiety
The cryptocurrency market has been rocked by uncertainty recently, with the price of Bitcoin plummeting.
After falling below $57,000 on September 5, Bitcoin fell to $55,711.26, a sharp decline in market sentiment. This decline pushed the Crypto Fear & Greed Index back into “extreme fear” territory with a score of 22, a notable drop from the previous day’s “fear” score of 29.
Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, has commented on the current market situation, predicting further declines in the Bitcoin price in a post on X, suggesting that it could drop below $50,000 over the weekend.
$Bitcoin Heavy. I’m aiming for under $50k this weekend. I shorted shamelessly. Pray for my soul. I’m regressive.
— Arthur Hayes (@CryptoHayes) September 6, 2024
Hayes’ forecast comes amid a general market slowdown and growing concerns about the U.S. economy.
Over 36 million Bitcoin long positions have been liquidated.
The recent crash has wiped out about $29.7 billion in Bitcoin market cap. According to CoinGlass data, $36.71 million worth of long positions were liquidated as a result of the price crash, accounting for about 40% of all cryptocurrency liquidations today.
The decline in Bitcoin’s value has sent ripples through the entire cryptocurrency market. Other major cryptocurrencies have also seen declines, with Ethereum (ETH) down 2.23%, Solana (SOL) down 2.82%, and Ripple (XRP) down 2.19%.
This broad downtrend has resulted in over $94.26 million in liquidations over the past 24 hours, with Bitcoin and Ethereum longs accounting for more than half of these liquidations.
The current volatility in the cryptocurrency market is due to a confluence of a wide range of macroeconomic factors. Notably, recent U.S. jobs data fell short of expectations, raising concerns about a Federal Reserve rate cut and adding to market concerns.
As Bitcoin navigates this turbulent environment, everyone will be interested to see whether Hayes’ prediction comes true and how overall market sentiment shifts in response to ongoing economic signals.