In the immediate term, former BitMEX CEO Arthur Hayes sees crypto as bearish. He believes the Nasdaq 100 will plummet, dragging bitcoin down to roughly $30,000.
Crypto is moving in lockstep with US technology stocks, according to the former investment banker, and Russia’s invasion of Ukraine would harm both. While he believes that crypto values will rise in the long run, he believes that they are on the verge of a “catastrophic ending.”
Crypto is moving in lockstep with US technology stocks, according to the former investment banker, and Russia’s invasion of Ukraine would harm both. While he believes that crypto values will rise in the long run, he believes that they are on the verge of a “catastrophic ending.”
What’s more perplexing is why he believes the Nasdaq 100 will fall. The influence of the Russian invasion is one of the reasons. “Global growth will slow due to rising commodity prices, which will be fueled by the continuing and probable intensification of the Russia/Ukraine conflict,” Hayes says. He goes on to say that this will impact stock prices.
The second reason is that the Nasdaq 100 benefits from lowering interest rates, whereas the world is currently seeing rising interest rates as a result of inflation.
The final part is based on a look at the Nasdaq 100 chart. According to Hayes, the tech index failed to make a meaningful rebound from a crucial technical level, implying that it may continue to fall.
In the short run, he’s bearish as a whole. According to Hayes, bitcoin could drop below $30,000 by the end of June, while ether might collapse to $2,500.
Beyond Bitcoin, Arthur Hayes says he’s been stockpiling other cryptocurrencies because they’re considerably cheaper. However, he is fearful that they will fall further this year. “Even though some of these coins are already down 75% from their all-time highs,” he writes,
“I don’t believe even they will be immune to the approaching crypto devastation.” As a result, he’s hedging his bets by purchasing put options that would outperform the market if it crashed this quarter.
Arthur Hayes acknowledges that his analysis may not come to fruition in its entirety.
“If the link between Bitcoin / Ether and the Nasdaq 100 starts to fall before a crash in risk asset markets, I will be mistaken. But he admits that he’s comfortable with it because he holds a long position in cryptocurrency in the long run.
Also Read: Honduras Adopts Bitcoin as Legal Tender in its Crypto-Friendly Special Economic Zone
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