Bitcoin destined for $30K in the coming weeks, warns BitMEX CEO

  • Amid inconsistent crypto prices, BitMEX CEO Arthur Hayes has predicted further losses over the coming months. 
  • According to the exchange CEO, BTC will decline to $30,000 and ETH to $2,500 by June.

Following the market rally in March, crypto has been volatile and BitMEX CEO Arthur Hayes predicts that the decline could get worse. Amid losses, the broad market capitalization of all crypto assets has dropped to less than $2 trillion and might squeeze further.

In the latest edition of The Q Trap, Hayes explains in detail how the global macroeconomic trend keeps changing. He described the relationship between the receding of the Nasdaq 100 index and Bitcoin and the crypto marketplace at large. 

According to the technical chart provided, Nasdaq 100 closed at a high of 16567.50 and went low to 13046.64 on the 27th of December, 2022. Per data from the Fibonacci analysis, Nasdaq did not pull through 61.8 percent retracement on the bounce. It tried to break the resistance level after, but to no avail. Accordingly, the Bitcoin advocate predicts Nasdaq will break further below its ATL, reducing to 10,000 or less. Inversely, he believes that the Fed Funds Future and central banks will not return to quantitative hardening due to inflation.

BitMEX CEO predicts the unpredictable crypto space amid high volatility

The crypto market has been unpredictable since the 1st of January. The BitMEX CEO stated that Bitcoin and Ethereum are related to the Nasdaq 100 index, affecting the crypto marketplace. However, Arthur Hayes presumes that there will be a profound series of Nasdaq 100 improvements. According to Hayes:

Bitcoin and Ether are highly correlated to the Nasdaq 100. If the NDX tanks, it will take crypto down with it. I am buying crash June 2022 puts on both Bitcoin and Ether.

Further expressing the possibility of a crypto fall, Hayes posits that Bitcoin and Ethereum will dip before the Fed’s policies are reversed from tight to lose. He predicts that BTC will trade at around $30,000 by June end while Ethereum will fall to $2,500 during the same period. 

Nevertheless, Arthur Hayes mentioned that there are stablecoins to consider valuable, although there were no ones mentioned in particular. 

These evaluations are not conclusive, and Hayes describes it as his “prognosis”. The CEO said:

This analysis is purely to trade a short-term situation that I believe will transpire in risk markets and hedge purchases of attractively priced altcoins.

To invest or not?

The decision to invest in crypto or not depends solely on the investor. Some investors are interested in crypto to use it as a hedge against inflation or an investment channel but not as a currency. For instance, Bitcoin’s value is predicted to fall to $30,000 in June, which may be the best time to buy. That means a drop of about 29 percent from its current price. Generally, a lot of people watch out for declines as a time to buy the shorts. Although, without an intrinsically valuable backing, crypto’s market cap is based entirely on speculation, which is essentially informed guesswork.

Arthur Hayes admits that the inability to decipher the cyclical nature of the crypto marketplace often results in ignorance. The undesired fact about crypto is that it moves in systematically with the liability-based, dependent asset markets.

 

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Bio: Ibukun Ogundare is a crypto writer and researcher who uses non-complex words to educate her audience. Ibukun is excited about writing and always looks forward to bringing more information to the world.

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