Arthur Hayes Predicts Bitcoin’s Value to Drop Below $40,000
Arthur Hayes, the co-founder of BitMEX, has expressed a negative view on Bitcoin’s future, forecasting a decrease in its value below the $40,000 mark. As a result, Hayes has invested in put options with a strike price of $35,000 that will mature on March 29.
Reasons for the Pessimistic Outlook
In his recent statement, Hayes cited the upcoming US Treasury quarterly refunding announcement as one of the factors contributing to his revised outlook. He believes that this event could lead to a decline in Bitcoin’s price.
$BTC looks mad heavy. I think we break $40k. I went long some 29Mar $35k strike puts. I think we dump into the 31Jan US Treasury qtly refunding annc. Is Janet Yellen or Talkin’? pic.twitter.com/lyjqNmldzh
— Arthur Hayes (@CryptoHayes) January 22, 2024
Hayes is reported to have invested in put options at a rate of 0.025 BTC per share, totaling 5 BTC and valuing his investment at around $203,620. This move demonstrates his confidence in the expected short-term movement of Bitcoin.
Hopes for a $1.3 Trillion Surge
Despite his current pessimism, Hayes previously made an optimistic prediction on January 16. He suggested that the total market capitalization of Bitcoin and other digital assets could experience a significant surge of over $1.3 trillion this year.
Hayes, an experienced figure in the crypto industry, projected that by 2024, the market capitalization of all digital assets might surpass the previous all-time high set in 2021.
This anticipated increase is expected to occur around March, coinciding with potential actions by the Federal Reserve to inject more liquidity into the market. Historically, such moves have led to rallies in risk assets like Bitcoin.
In addition to his predictions, it’s worth noting that the BTC price has recently declined to around $40,500 and currently sits below $41,000. The trading volume has also increased by 53% in the last 24 hours.
Hot Take: Arthur Hayes Anticipates Bitcoin’s Decline Below $40,000
Arthur Hayes, co-founder of BitMEX and a prominent figure in the crypto space, has expressed a bearish outlook on Bitcoin’s future. He predicts that the cryptocurrency will drop below the $40,000 threshold. To support his view, Hayes has invested in put options with a strike price of $35,000 set to mature on March 29.
Hayes believes that the upcoming US Treasury quarterly refunding announcement will contribute to the decline in Bitcoin’s value. However, it’s worth noting that Hayes previously made an optimistic forecast, suggesting a potential surge of over $1.3 trillion in the total market capitalization of Bitcoin and other digital assets. The anticipated increase is expected to occur around March, coinciding with potential actions by the Federal Reserve to inject liquidity into the market.
Despite his predictions, the BTC price has recently experienced a decline and currently stands below $41,000. The trading volume has also seen a significant increase, indicating heightened interest among traders.
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