- In a Medium blog post, Arthur Hayes shared his thoughts on Ethereum price performance in upcoming months.
Key Notes from Arthur Hayes Blog Post
Arthur Hayes, CEO and Co-Founder of BitMEX stated in his recent blog post on September 23, 2022, and said: “As I have said in various interviews, the only thing that I believe matters in the short term (i.e., the next three to six months) is how ETH issuance per block falls under the new Proof-of-Stake model.” He mentioned the post-merge effect that dropped the rate of ETH emissions on average from +13,000 ETH per day to -100 ETH.
He moreover added on Ethereum supply that “The price of ETH continues to get smoked due to deteriorating USD liquidity, but give the changes in the supply and demand dynamics time to percolate. In a few months, and I suspect you’ll see that the dramatic reduction in supply has created a strong and rising floor on the price.”
He referred to his previous purchase of $3,000 strike ETH/USD in December 2022 call options, and his fear that he does not have enough time to get into the money on his call options.
Furthermore, he described “Is the removal of almost $2 billion in sell pressure enough to cause the price to more than double in a little over three months from now? If my USD liquidity index turns higher, then maybe I stand a chance. But expect this is not an investment strategy. I most likely overestimated how quickly the reduction in supply would translate into higher ETH fiat prices.”
He showed his confidence in Ethereum and added that “Versus Bitcoin, I am confident that ETH will continue to outperform. The cleaner trade would have been to buy options on the ETH/BTC cross. But I already had that position in the physical, and I like trading, so I went for it.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.