Arthur HayesThe former CEO and co-founder of cryptocurrency exchange BitMEX predicted how low Bitcoin could go: recent decline. Hayes also revealed two altcoins to invest in if the current Bitcoin bottom occurs.
Bitcoin will still fall to $33,600.
his most Recent Blog PostsHayes hinted that Bitcoin would experience a 30% correction. Spot Bitcoin ETF The highest approved amount is $48,000. If so, the price of the flagship cryptocurrency token is expected to fall to $33,600. Accordingly, Hayes believes that BTC will subsequently form support between $30,000 and $35,000.
BitMEX Co-Founder He said he was preparing for that to happen and bought a strike put option on Bitcoin for $35,000. Hayes detailed scenarios where you could double your cryptocurrency investment.
he is Bank Term Financing Program (BTFP) Neither Janet Yellen nor Jerome Powell have commented on this, so it is not being renewed. However, if the BTFP were to be extended, Hayes said he would terminate all put options and “continue to sell Treasuries and purchase cryptocurrencies to maximize crypto risk.”
Meanwhile, Hayes plans to start ‘bottom fishing’ in the following cases: Bitcoin falls below $35,000 As expected. He said that if that happens, “we’ll be loading Solana and WIF.” Interestingly, Hayes mentioned that BONK was the “puppy money of the last cycle,” which may explain why he chose Solana’s second-largest meme coin over BONK. First of all, BONK. According to him, “If it’s not a Wif Hat, it’s no big deal.”
BTC price rebounds above $41,900 | Source: BTCUSD on Tradingview.com
Reasons for BTC’s recent dump
Arthur Hayes’ position The point is that BTFP is likely responsible for the recent Bitcoin dump. He said Bitcoin is already anticipating that BTFP will not be renewed, which could end up being a disastrous event. Hayes explained that this funding is important for the bank because it cannot survive without government support.
He predicted that the suspension of BTFP would lead to a microfinance crisis. federal reserve bank Measures such as lowering interest rates, reducing quantitative austerity, and resuming money printing through quantitative easing (QE) must be taken. Hayes suggested that such a move could be as bad as he claims. BTC’s price action Proving he was right.
Hayes also highlighted the following claims: Grayscale’s GBTC Leak This has been the cause of the recent decline in Bitcoin. However, he was quick to dismiss this claim, noting that it was “bogus” considering that inflows into the newly listed Spot Bitcoin ETF were replacing funds flowing out of GBTC.
Featured image from CNBC, chart from Tradingview.com