Altcoins may tank 90% after Bitcoin crash: Arthur Hayes

Vinod Dsouza
Bitcoin Ethereum
Source: Pixabay

If the ongoing crypto market blood bath wasn’t enough, the former CEO of BitMEX, Arthur Hayes pained a gloomy yet terrifying picture of what could be coming ahead. In a recent Medium blogpost, Arthur predicted that altcoins could crash between 75 to 90% from where they are trading.

He also stated that those who proudly proclaim themselves as “diamond hands” will not save Bitcoin from the “calamitous fall”. He predicted that even institutional investors will dump BTC in an effort to safeguard and damage control their losses. However, Arthur predicts that Bitcoin and Ethereum will be much less compared to the alt-coins circulating in the market.

“If I believe that Bitcoin could trade below $30,000 and Ether below $2,000 in a three-to-six month time horizon, I will dump all of my shitcoins. That is because Bitcoin and Ether are the highest quality coins. And they will decline less than all their yet-to-be-proven competitors. Any specific applications that use the Bitcoin or Ether blockchain will also experience gravity at greater than 9.8m/s. These shitcoins could go down 75% to 90% in a true crypto risk-off environment,” he predicted in his Medium blogpost.

The crypto market is treading on dangerous waters in 2022 and is unable to steer the ship towards the harbor. The market has dipped considerably reaching new weekly lows which is a cause of concern.

The overall sentiment could take a beating if the dips continue and a flamingo effect of panic selling could begin. If that occurs, the market could further slump as sell-offs would make prices reach newer lows. The true test of those who call themselves diamond hands would come this year when the market plummets.

When Bitcoin Dips, All Altcoins Are in Danger

Arthur Hayes predicts that all altcoins are in danger including the famous ones such as Dogecoin and Shiba Inu. He wrote that if Bitcoin and Ethereum dip, altcoins would go in tandem with the market and reach the abyss.

“Regardless of whether you purchased a sick pad or more SHIB. If Bitcoin or Ether falls 20% to 30%, you will be forced to sell assets and raise Bitcoin or Ether in order to avoid forced liquidation,” he wrote. “It doesn’t take much marginal selling pressure to prick the hopium bubble,” Arthur summed it up in his piece.

At the time of publishing, Bitcoin was trading at $42,385 and is down -1.15% in the days’ trade.