Former BitMEX CEO Arthur Hayes reveal “pockets of forced selling” of Bitcoin (btc) and Ethereum (ETH) could cause the cryptocurrency market to dip once more in the near future.
Hayes notes that Canada’s Purpose Bitcoin exchange-traded fund (ETF) sold off a staggering 24,500 Bitcoin (BTC) on Friday.
“I’m not sure how they execute redemptions but that’s several physical Bitcoin to sell in a small time frame. Over the weekend, while the fiat rails are closed, Bitcoin has decreased to a low of $17,600 down almost 20 percent from Friday on good volume. Smells like a forced seller triggered run-on stops.”
Bitcoin is trading for $20,474 at time of writing. Hayes reveal the market quickly rallied on low volume after sellers dumped their holdings.
“Given the poor state of management of danger by digital currency lenders and over-generous lending terms, expect more pockets of forced selling of Bitcoin and ETH as the market figures out who is swimming naked.
Is it over yet… I don’t know. On the other hand, for those skilled knife catchers, there may yet be additional opportunities to buy coin from those who needs whack every bid no matter the price.”
Hayes said in a recent blog post that he’s looking at a particular weekend when cryptocurrency could capitulate as panic sellers flood a bidless market.
“By June 30th (second quarter end), the Fed will have enacted a 75 basis point price 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 cryptocurrency dump.”
In March, Hayes and fellow BitMEX co-founders Benjamin Delo and Samuel Reed pled guiltyto breaking a law that requires financial institutions to assist the government detect and counter money laundering schemes.
The United States Department of Justice (DOJ) alleged that the trio willfully failed to maintain anti-money laundering protocols and profited from the transactions of US-based customers regardless of claiming that BitMEX did not serve individuals in the US.
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