Arthur Hayes, co-founder of BitMEX, expresses doubts regarding the short-term outlook for Bitcoin and Ethereum amid deteriorating economic indicators.
Hayes' Short-Term Concerns
Hayes predicts that Bitcoin's price could drop below $100,000 due to disappointing U.S. employment reports. He noted that the employment data signals slower economic growth, which may lead to decreased liquidity and a diminished appetite for risky assets.
Market Implications
Hayes also warned that Ethereum could fall below $3,000 due to ongoing selling pressure and market uncertainty. At the time of writing, Bitcoin is trading at $112,779.32, while Ethereum is priced at $3,450.30. Consequently, he sold 2,373 ETH worth approximately $8.32 million, sparking discussions in the crypto community and possibly indicating a shift in his investment strategy.
Warning About Stablecoin Bubble
Hayes expressed concerns about a potential bubble in the stablecoin market, stating that many companies might attract significant investments using financial gimmicks while lacking solid foundations. He cautioned that after attracting huge amounts, such companies risk collapsing. 'The bubble will pop once a stablecoin issuer convinces investors to part with tens of billions, only to collapse,' he warned.
Arthur Hayes' views highlight the current risks for Bitcoin and Ethereum and underscore the need for careful analysis of the situation in the cryptocurrency market.
