Arthur Hayes, co-founder, and CEO of BitMEX has shared his thoughts on the current market predicament. Hayes took to Twitter and told his 250K followers that focusing on listed and unlisted option flows, most of the open interest for Bitcoin (BTC) is at $20k, and that for Ethereum (ETH) is at $1k.
Hayes has based his judgement upon the data available on the Deribit exchange. Hayes also says that it is safe to assume there are massive over-the-counter (OTC) structured products around the aforementioned strikes.
As per his tweet, if the $20k and $1k levels break for Bitcoin (BTC) and Ethereum (ETH), we should expect massive sell pressure in the spot market as dealers hedge their investments. We should also expect certain otc dealers to fail to hedge adequately and go out of business.
The financial expert said,
“As far as the charts go, you better get out your Lord Satoshi prayer book, and hope the lord shows kindness on the soul of the crypto markets. Bc if these levels break, you might as well shut down your computer bc your charts will be useless for a while.”
In an earlier Medium blog post, Hayes predicted that Bitcoin and Ethereum would soon bottom out in the $25k-$27k and $1.7k-$1.8k ranges, respectively. The expert seems to have missed his mark.
However, Hayes was also of the opinion that Bitcoin would go to $1 million by 2030.
At press time Bitcoin was trading at $22,782.51, down by 11.2% in the last 24 hours, and down by 27.5% over the last week. The original cryptocurrency is also down by 67.5% from its all-time high of $69,044.77.
On the other hand, at press time, Ethereum was trading at $1,208.97, down by 10.7% in the last 24 hours, and down by 35.0% in the last week. ETH is a whopping 75.6% down from its all-time high of $4,878.26, which it attained in November of 2021.