Arthur Hayes, the former chief executive of crypto derivatives exchange BitMEX, is issuing a warning to investors, saying that all crypto assets apart from Bitcoin (BTC) and Ethereum (ETH) could see devastating losses.
In a new article, Hayes says that if BTC and ETH dip below $30,000 and $2,000 respectively in the coming months, he’d consider dumping all of his other crypto assets as they could see staggering losses.
“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 sh*tcoins. 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 sh*tcoins could go down 75% to 90% in a true crypto risk-off environment.”
Hayes also says that if BTC and ETH correct below their previous bull market highs, he would begin to question the value of the two largest crypto assets.
“If Bitcoin trades at or below $20,000 or Ether trades at or below $1,400, then I will start to wonder whether these cryptos can preserve their value in energy terms.
Those two levels were the previous all-time highs during the 2017 bull market. But that’s the fiat price, if oil goes negative again then who cares if the benchmark cryptos fetch fewer fiat units?”
BTC is exchanging hands at $42,014 at time of writing, an 20.98% decrease from its 30-day peak of $50,830 while ETH is trading at $3,134, a 35% decrease from its 30-day high of $4,179.
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