Former BitMEX CEO Arthur Hayes is warning that crypto assets face a precarious road as central banks across the globe pursue tight monetary policies.
Hayes says in a new blog post that he’s looking at a particular weekend when crypto could capitulate as panic sellers flood a bidless market.
“By June 30th (second quarter end), the Fed will have enacted a 75 basis point rate hike and begun shrinking its balance sheet. July 4th falls on a Monday, and is a federal and banking holiday. This is the perfect setup for yet another mega crypto dump.”
The closely tracked crypto capitalist says that during the US Independence Day weekend, he expects a significant drop in liquidity, which he notes does not bode well for Bitcoin (BTC) and Ethereum (ETH).
“June 30th to July 5th is going to be a wild ride to the downside. My $25,000 to $27,000 Bitcoin and $1,700 to $1,800 Ether bottom levels lay in tatters. How low can we go? I believe we’ll find out on this fateful weekend.
This week Bitcoin and Ether bounced off of $20,000 and $1,000 respectively in an impressive fashion. Can they hold a renewed attack on these levels during a weekend where no fresh filthy fiat can be deposited on crypto exchanges?”
Hayes also warns that if the sell-off does take place, he sees the rest of the crypto markets taking a huge hit.
“While Bitcoin and Ethereum hopefully won’t get much cheaper, it will be goblin town for the rest of the shitcoin complex.”
Goblin town is a term commonly used by crypto traders and investors to describe a persistent downtrend in the markets.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong