The co-founder of crypto exchange platform BitMEX thinks Bitcoin (BTC), Ethereum (ETH), altcoins and the stock market are hurtling toward a major price crash.
In a new essay, Arthur Hayes says the Federal Reserve and other central banks around the world are combating inflation by tightening monetary conditions.
[adinserter block="1"]According to Hayes, the hawkish stance of the central banks around the world does not bode well for the Nasdaq 100 (NDX), which is highly correlated to Bitcoin and Ethereum.
“Global growth will decline on higher commodity prices driven by the continuation and possible escalation of the Russia/Ukraine war. This, in absence of accommodative central banks, will also weigh negatively on stonks [stocks]. Ipso facto, NDX will fall and so will crypto.”
Hayes predicts that Bitcoin will crash to $30,000 and Ethereum will plummet to $2,500 by the end of the second quarter of 2022.
“There isn’t much science to these numbers other than a gut feeling. The annoying part is that there are a number of altcoins I have begun to accumulate because the prices are quite attractive. Even though some of these coins are already down 75% from their all-time high, I don’t believe even they can escape the coming crypto carnage. As such, I am buying crash June 2022 puts on both Bitcoin and Ether.”
In February, Hayes and Benjamin Delo, another BitMEX co-founder, pled guilty to violating the Bank Secrecy Act by willfully failing to establish anti-money laundering protocols on their exchange.
Both Hayes and Delo agreed to pay $10 million fines, according to the Department of Justice.
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