Market watchers and analysts suggest that Bitcoin could slip to $30,000 as investors begin to move cash to safer bets from speculative assets.
Some analysts claim that most investors consider cryptocurrencies as speculative stocks. The entire crypto market seems to have taken a punch to the head in the last 24 hours. Bitcoin alone is down more than 7.7%, and Ethereum is down by 9%, as per the data by CoinMarketCap.
Bitcoin is struggling to keep up
At the time of writing, Bitcoin is trading at $39,805, and ether is at $2989.
“It’s been a rough week for bitcoin which has been hammered by deteriorating risk appetite.”
Craig Erlam, a market analyst at Oanda
BitMEX co-founder Arthur Hayes wrote in a blog post, “This is crypto, and magic internet money corrupts the brain so let me … attempt to sober you up.”
Hayes stated that he is purchasing put options on cryptocurrencies. He also believes that it will fall in June 2022. According to Hayes, bitcoin will drop to $30,000 from a high of more than $68,000 in November 2021, while ether will fall to $2,500 from a high of more than $4,800 in November 2021.
As long as bitcoin trades above its fair price of $38,000, which was determined using the network value to transaction ratio and on-chain data, there’s “not going to be a massive collapse” in the short term. The statement was given by Charlie Erith, CEO of crypto investment adviser ByteTree.
In February, Arthur Hayes and Benjamin Delo, co-founders of BitMEX, pled guilty to federal charges of failing to implement an anti-money laundering program at BitMEX. Hayes and Delo each had to pay a penalty of $10 million.
Will Arthur’s words come true and Bitcoin plummet to $30,000? I guess we have to wait and find out how the market will turn out.