After a record-breaking fall, the former CEO of BitMEX – Arthur Hayes – has given a more serious view of where crypto is headed. In the latest Twitter thread, Hayes said that the relief could be brief, and the forced selloff could drag the entire market down in the near term.
- pre performance Predicted The potential for a sharp selloff of the crypto in the short term after Friday saw the Canadian Purpose Bitcoin ETF liquidating 24,500 BTC, representing nearly half of its total holdings.
BTCC – Objective ETF 24,500 $BTC North American at the close of Friday. I am not sure how they execute the redemption, but this is physical BTC to sell in very short time frame. pic.twitter.com/BY7foKdPjY
— Arthur Hayes (@CryptoHayes) June 19, 2022
- Hayes suspected that the subsequent selloff may have been caused by a forced seller triggering a large group of stop-loss orders.
- The former BitMEX CEO took a jibe at crypto-lending platforms and pointed to their “poor risk-management” strategies as well as “lenient lending terms”, saying that he was forced to sell Bitcoin (BTC) and Ethereum. Expect more pockets of sales. (ETH).
- Quoting renowned stock-picker and Berkshire Hathaway CEO, Warren Buffett, Hayes also said that the crypto market is finding out who is “swimming naked.”
- The rapid decline has exposed the vulnerabilities of many major companies on the front lines of crypto.
- Hayes can mention another shake-out that will potentially highlight a number of risks in the coming days.
- His comments come at a time when DeFi, as well as the collective crypto sector, are bearing the brunt of the liquidation rumors of Three Arrows Capital (3AC) and Celsius.
“Is it over now… idk. But for those skilled knife catchers, there may be additional opportunities to buy coins from people who must kill every bid, no matter what the price.”
- Last week, Hayes argued that Bitcoin is forming a base at $20k, while Ethereum is attempting to limit its losses to $1k and warned that a breach of the levels in question could lead to a damaging turn of events for both. There may be a turning point.
- Thereafter, the prices tumbled, but the overall sentiment remains bearish, despite the market turning light green. Worries of escalating crisis have hit investors hard as they try to recoup some of their losses.
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