Arthur Hayes, the co-founder and CEO of BitMEX, has spoken out against the present market situation. Hayes took to Twitter to tell his 250K followers that the majority of open interest for Bitcoin (BTC) is at $20k, while Ethereum (ETH) is at $1k, based on declared and unlisted option flows.
Here we go ...
— Arthur Hayes (@CryptoHayes) June 14, 2022
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Looking at onchain data for $wBTC and $ETH, the liquidations have mostly happened. Data visualization from @parsec_finance
Hayes made his decision based on the information available on the Deribit exchange. Hayes also believes that enormous over-the-counter (OTC) structured products are likely to exist around the aforementioned strikes.
If the $20k and $1k thresholds for Bitcoin (BTC) and Ethereum (ETH) are broken, we should expect massive sell pressure in the spot market as dealers hedge their investments, according to his tweet. Certain otc dealers should also be expected to fail to hedge appropriately and go out of business.
According to the financial expert,
- “As far as the charts go, you better get out your Lord Satoshi prayer book, and hope the lord shows kindness on the soul of the crypto markets. Bc if these levels break, you might as well shut down your computer bc your charts will be useless for a while.”
Hayes anticipated that Bitcoin and Ethereum would eventually bottom out in the $25k-$27k and $1.7k-$1.8k areas, respectively, in an earlier Medium blog post. The expert appears to have gotten it wrong.
Hayes, on the other hand, predicted that Bitcoin would reach $1 million by 2030.
Bitcoin was trading at $22,782.51 at press time, down 11.2 percent in the last 24 hours and 27.5 percent in the previous week. The original cryptocurrency has likewise lost 67.5 percent of its value since reaching an all-time high of $69,044.77.
Ethereum, on the other hand, was trading at $1,208.97 at press time, down 10.7% in the prior 24 hours and 35.0 percent in the previous week. ETH is down 75.6 percent from its all-time high of $4,878.26 set in November 2021.
