- The crypto is bound to see even worse days due to the Fed’s quantitative tightening measures, said BitMEX founder Arthur Hayes.
- According to him, the Uniswap market and LooksRare NFT will be among the most profitable investments going forward.
BitMEX founder Arthur Hayes has once again expressed his opinion on the state of the crypto markets. He now says the current market downturn is just beginning and bigger losses are expected in the coming months.
His latest blog post is titled “Floats“, is a name referring to prominent companies that have recently been on the verge of bankruptcy. Companies like Celsius and Three Arrows had “unsustainable business models and business strategies”.
Fed actions herald imminent doom for crypto: Hayes
But even then, Hayes says the current cash crunch will only get worse over the next 6-12 months.
As the weeks go by, the market will continue to see investor letters and regulatory filings outlining the extent of the losses suffered by funds and companies on the back of crypto capital markets losing nearly 50% of its value over the course of the week. of the second trimester.
Altcoins, in particular, are expected to decline by 50% or more. He attributes these actions to lower prices on the Fed’s upcoming quantitative tightening announcements (June 30). In other words, the Fed will implement a 75 basis point rate hike and reduce its balance sheet.
June 30 to July 5 is going to be a mad dash to the bottom,
Now is the time for the faithful to sow seeds for the next crop of bulls.
With the drop, Hayes said he will watch for opportunistic dips, leaning more toward Uniswap ENS and Looksrare. LOOKS, the native token of the NFT market, fell 98%, or as Hayes puts it, “absolutely shot” to its all time low. Crypto projects that are down 75-99% from their 2021 all-time highs, those with real users spending real capital on their services, and some early DeFi movers, are appropriate investments, he believes. he.
Better days ahead
Two days ago, Hayes identified $20,000 and $1,000 as the next critical points for Bitcoin (BTC) and Ethereum (ETH), respectively. If they fell below these levels, crypto traders might as well shut down their computers because “the charts would be useless for a while.”
On the same day, the Fed announced interest rate hikes, causing the crypto market to rise briefly. However, the downtrend seems to have resumed. At the time of writing, Bitcoin was priced at $21,130, down 2.6% in the last 24 hours. Meanwhile, ETH was trading at $1,101.65, down 5.2% over the past day.
Nevertheless, several crypto market analysts say things will start to look like much better come 2024. They attribute this to the fact that policymakers will have begun to adopt quantitative easing measures to reorganize the economy. Jurrien Timmer from Fidelity too job several pieces of evidence yesterday showing that the price and value of Bitcoin have currently diverged.