- Bitmex founder Arthur Hayes has announced that he will buy Bitcoin for $20,000 and Ethereum for $1,300.
- He cites that these values of both Bitcoin and Ethereum are significant because they were at previous highs.
- Hayes also said that the cryptocurrency crash is not over and LUNA is
- He warned the Fed’s rate hikes would ‘continue to destroy long-term risky assets’.
- Arthur Hayes also admits that he didn’t expect Bitcoin to test the $30,000 again.
Arthur Hayes, founder and former CEO of Bitmex, once again provided valuable insight into the possible future of digital assets, including Bitcoin and Ethereum.
to recent blog postMr. Hayes said he would buy Bitcoin and $20,000 and Ethereum for $1,300, both of the previous highs set during the 2017-2018 bull market.
This Bitcoin and Crypto Crash Is ‘Not Over’
His analysis is based on UST defegging and the ongoing cryptocurrency collapse caused by the Luna Foundation selling its entire Bitcoin holdings to rescue stablecoins.
According to Hayes, the market turmoil is not over. Because the Fed will continue its mission of raising interest rates to combat inflation. As a result, assets that are considered risky, such as Bitcoin, will continue to struggle in the market. he said:
During a proper meltdown, markets reach out in search of reckless sellers. This week’s plunge was further accentuated by the forced sale of all Luna Foundation Bitcoin to defend against the UST:USD peg.
The US CPI for April was 8.3%, below the previous figure of 8.5%. 8.3% is still too hot to deal with, and the Fed in firefighter mode can’t give up its whimsical quest for inflation. A 50bp increase in June is expected, which will continue to destroy long-term risky assets.
Hayes didn’t expect Bitcoin to drop to $30k so quickly.
Also, Arthur Hayes previous forecast $30,000 in Bitcoin and $2,500 in Ethereum happened faster than expected. However, the collapse has proven that the crypto market can’t afford the Fed’s rate hikes. He explained:
I sold my Bitcoin $30,000 and Ether $2,500 June puts…
I didn’t expect the market to trade this level so quickly. The collapse came less than a week after the Fed raised rates to an expected 50 basis points.
Let me reiterate the relevant fact that the market expected a 50bp hike but still vomited after that.
This market cannot afford rising nominal interest rates. It surprises me that long-duration risky assets with all-time highs of price multiples can be trusted to not succumb to higher nominal interest rates.