“A Catastrophic Blow” – Crypto Exchange Founder Issues Serious Price Prediction Warning as Bitcoin Falls Towards $20,000 and Ethereum, BNB, XRP, Solana and Cardano Crash
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The price of bitcoin crashed this week to $20,000 per bitcoin, a psychological barrier that bitcoin first breached in late 2017 before entering a three-year bear market. Ethereum and other major cryptocurrencies including top ten BNB coins
This week, Arthur Hayes, the influential co-founder of bitcoin and crypto exchange BitMEX, warned of “massive selling pressure” if the price of bitcoin falls below $20,000 – telling traders that they “might as well shut down [their] the computer.”
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In a Twitter feed, Hayes, who in May was sentenced to six months of house arrest as part of a two-year probationary period after pleading guilty to violating the US bank secrecy law, pointed to data showing that the bitcoin formed a base at $20,000 and ethereum at $1,000. “If those levels break, you might as well shut down your computer because your graphics will be useless for a while,” Hayes said.
“We can expect massive selling pressure in spot markets as dealers hedge,” Hayes added, warning that severe losses could lead to “fatigue” on some trade desks.
Bitcoin, Ethereum and other cryptocurrencies suffered an almighty crash over the past week as higher-than-expected inflation data pushed the Federal Reserve into an interest-rate hike program more hawkish than expected in an effort to stop soaring prices.
On Wednesday, the Fed raised interest rates by 75 basis points, its biggest increase since the 1990s. Global stock markets also came under increased pressure this week, with major US indexes entering bear markets.
“The Fed has abandoned its previous guidance and opted for a full 0.75% interest rate hike,” Laith Khalaf, head of investment analysis at broker AJ Bell, wrote in comments by email. “The S&P 500 is now in bearish territory, so it’s obvious that investors are starting to think about the unthinkable, that monetary policy might actually have a chance of reaching levels last seen before the financial crisis. “
“Global markets have suffered a catastrophic blow,” Marcus Sotiriou, an analyst at GlobalBlock, a UK-based digital asset broker, wrote in an emailed note. “Since the crypto rally in November, the crypto has been on a relentless downtrend with few signs of relief.”
Last week’s huge bitcoin and crypto crash was exacerbated by liquidity issues at top crypto lender Celsius. Celsius, which pays interest on bitcoin, ethereum and other user cryptocurrencies stored on the platform, this week blocked customers from withdrawing funds, citing “extreme market conditions”.
“The market is rightly fearful of the potential impacts of Celsius’ insolvency, while still having billions in assets under management,” Sotiriou added.