BitMEX CEO and co-Founder, Arthur Hayes, just announced his latest Bitcoin prediction. Billed as “A look into my trader brain during this time of intense market volatility,” his latest trader digest gives his view on current global markets, and of course, Bitcoin.
Bitcoin Gotta Go Down To Go Up?
Considering the global pandemic concerns and return of macroeconomic volatility, Hayes notes that even at current levels, Bitcoin has outperformed most indexes in 2020. However, he believes that Bitcoin will be dragged down with global markets, although not as far as some commentators.
While I don’t believe we will revisit $3,000, max pain probably resides somewhere between $6,000 to $7,000 Bitcoin.
He explains that crypto hedge funds with quarterly liquidity or less will be “dumping coins into a falling market,” which “will push the price lower on the margin.”
Central Banks To Lower Rates And Print Money
However, at some point he expects central banks to “cut rates to zero and announce open ended quantitative easing.”
He believes that this will see Bitcoin run back up through $10k and on to $20k by the end of the year. Although it may not happen immediately.
When the futures basis goes flat or negative, that “will signal an evaporation of optimism,” and mark the point at which to strike. Hayes recommends firstly filling your bitcoin bags, and then stocking up on alt-coins.
He even thinks that Ripple (which he recently called ‘dog-s**t’ and refers to in the report as ‘cRipple’) might pop.
Would You Trust This Man?
Of course, whether you trust market advice from a man who makes money when your trades get liquidated is another thing. He certainly has a vested interest in encouraging you to make leveraged trades on BitMEX, and then seeing your position wiped out.
He also manages to make a bigger mistake in judgement call earlier on in the report:
I say the Fed should “Relax”, in the words of Duran Duran
Even if you trust a man who gains from your financial loss, surely you wouldn’t trust a guy who doesn’t know that “Relax” was by Frankie Goes To Hollywood, and not Duran Duran. Get your eighties music references correct if you want respect man!
What do you make of Arthur Hayes latest bitcoin prediction? Add your thoughts below!
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Source: Bitcoinist News