BitMEX Co-Founder Arthur Hayes Warns of Potential Upcoming “Mega Crypto Dump” – Here’s His Timeline
Former BitMEX CEO Arthur Hayes warns that crypto assets face a rocky road as central banks around the world pursue tight monetary policies.
Hayes says in a new blog post that he envisions a particular weekend where the crypto could capitulate as panic sellers flood a bidless market.
“By June 30 (end of second quarter), the Fed will have enacted a 75 basis point rate hike and begun to shrink its balance sheet. July 4 falls on a Monday and is a federal and banking holiday. C is the perfect setup for another mega cipher dump.
The closely-watched crypto-capitalist says that over the US Independence Day weekend, he expects a significant drop in liquidity, which he says doesn’t bode well for Bitcoin. (BTC) and Ethereum (ETH).
“From June 30 to July 5, it will be a mad race to the bottom. My lower levels of $25,000-$27,000 Bitcoin and $1,700-$1,800 Ether were in tatters. How low can we go? I believe we will find out during this fateful weekend.
This week, Bitcoin and Ether rebounded impressively from $20,000 and $1,000 respectively. Can they stage a new attack at these levels during a weekend when no new dirty fiat can be deposited on crypto exchanges? »
Hayes also warns that if the selloff takes place, he sees the rest of the crypto markets taking a huge hit.
“While Bitcoin and Ethereum will hopefully not get much cheaper, it will be a goblin town for the rest of the shitcoin complex.”
Goblin City is a term commonly used by crypto traders and investors to describe a persistent downward trend in the markets.
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Feature image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong