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.
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“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.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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