Arthur Hayes, the co-founder of BitMEX (one of the largest venues for trading crypto derivatives across the globe), noted in his latest article that at times people wish to undergo pain to remind themselves that they still live. He further mentions how another half of the altcoins’ value may be lost by them in the weeks to come.
Hayes Warns for a Plunge of 50% in BTC and ETH
Hayes proposes that the situation of liquidity within the market of cryptocurrency will face some bad phases in the present year as well as likely at the start of the coming year. In addition to this, he acknowledged that a couple of bottom predictions made formerly were false. In Hayes’ former articles, he pointed out that a minimum decline placing it at $1,500 will be witnessed in the value of Ethereum whereas Bitcoin will witness a plunge and touch $25,000.
He made his latest anticipation based on the intention of the Fed to push an exclusive rate hike of 75 bps, which is likely to push those investors who are circumventing risk exposure to a further level from hazardous assets such as cryptocurrencies. The co-founder even anticipated a specific date range when the market may experience the largest pressure between 30th June and 5th July this year when the commencing balance sheet of the Fed initiates shrinking.
The former chief executive of BitMEX thinks of dumping the entirety of the rest of the crypto assets in his possession as some shocking losses could take place in their values. In his words, a plunge of 75% – 90% could be undergone by the altcoins. As per Hayes, if ETH and BTC decline below their former bull runs, he would argue about the worth of the two top crypto assets as if they can preserve the value thereof in the terms of energy. He generalized that this will be the case with all the crypto assets.
The above-mentioned values of Ethereum and Bitcoin are the former all-time highs that they achieved during the bull market of 2017. However, he moved on to say, that is the fiat value and if a decrease is found in oil then unexpected nose-dives might be observed. At the moment, the exchange value of Bitcoin is $42,014 – which is 20.98% below the 30-day high thereof at $50,830, whereas $3,134 is the exchange value of ETH – approximately 35% lower than the 30-day high thereof at $4,179.
BitMEX Co-Founders Found Guilty of Exploiting US Customers
Hayes as well as the rest of the co-founders of BitMEX taking into account Samuel Reed and Benjamin Delo were found guilty of infringing a regulation demanding the financial organizations help the authorities in identifying as well as confronting the money laundering schemes.
As asserted by the United States Department of Justice (DOJ) the three executives were reportedly involved in the infringement of anti-money laundering rules as well as took advantage of the consumers belonging to the United States and manipulated their transactions while operating from outside of the country.
