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Crypto exchange BitMEX founder Arthur Hayes has predicted crypto carnage this year that anyone approaching crypto should consider once
After getting to a new high last year when global crypto market capitalization almost reached more than $3 trillion, the whole crypto space seems to be struggling for a long time since the start of this year. It has been volatile throughout the year; although seen some rally in March, it is getting under pressure again.
Once the $3 trillion market cap has shrunk to less than $2 trillion, the CEO of BitMEX, Arthur Hayes, shared his thought that the worst of it is yet to come. He had his latest opinion piece by the title, ‘The Q-Trap’ in which Hayes speaks about the changing global trends related to macroeconomics in detail. Hayes expected the weakness of the Nasdaq 100 (NDX) index and its close relation or effect on bitcoin and the crypto market in general.
While sharing the Nasdaq chart, Hayes stated that the Nasdaq 100, on 27th December 2022, closed at 16567.5 high and then had hit a low of 13046.4 recently. BitMEX CEO used Fibonacci Retracement and stated that NDX has failed to break through its retracement of 61.8% on the bounce. However, it attempted to break the resistance level again after a few days but failed and remained lower ever since continuously.
Further, Hayes expected NDX to break below its local low and slip under 10,000. On the other hand, he noted that while the financial authorities all around, like the Fed and alike central banks, need to deal with inflation, it does not seem that they would be moving back from their traditional way of tightening anytime soon.
BitMEX CEO predicts that there would be strong effects of Nasdaq 100 correction on the entire crypto market. He said that bitcoin and ethereum have a high correlation to the NDX and if the index tanks, it would take the crypto market with it. He assumes that by June 2022, bitcoin and ether prices will crash. He said that by the second quarter of 2022 end, Bitcoin would hit $30,000, and ethereum would reach $2,500.
Although with cryptocurrencies other than these two, Hayes has hopes from altcoins that they could perform better than others and indicated that he would also consider them in order to get an edge at the time top crypto to get down as expected.
However, he clearly stated that it’s his prediction and solely based on assumptions on a disclaimer note. While making such thoughts, he keeps right to be wrong in case anything he says will not follow as it is.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
