Former CEO of the BitMEX exchange Arthur Hayes believes that the cryptocurrency market is headed for a fall. He said that by the end of this year the price of Bitcoin will drop to $30,000 and Ethereum to $2,500.
In his blog, Hayes wrote that when making his forecasts, he relies more on intuition than on technical analysis.
There is no special science behind these numbers, it is rather intuition. The worst part is that I have already started purchasing certain altcoins as the prices are extremely attractive. And while many are down 75% from all-time highs, I don't think altcoins will be able to escape the coming decline. I will begin to buy back Bitcoin and Ether after the fall in June 2022.
Hayes noted that this forecast may very well turn out to be incorrect. However, the increased correlation between the cryptocurrency and traditional markets hints at just such an outcome.
Many believe that the worst is over. I think they are ignoring the inconvenient truth that cryptocurrency markets are now extremely highly correlated with traditional markets. Trading occurs regardless of fundamental factors. The market does not take into account that blockchains - peer-to-peer, decentralized and censorship-resistant digital networks - are created for the transfer of money and more.
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