Arthur Hayes, a highly respected player in the cryptocurrency industry and former leader of the cryptocurrency exchange BitMEX, has issued a warning that all cryptocurrency assets except Bitcoin and Ethereum could suffer serious losses.
Hayes said in his report that if Bitcoin and Ethereum fall below $ 30K and $ 2K respectively in the coming months, he would consider selling all of his other crypto assets, as his losses could be staggering.
"I'm going to throw all my shItcoins if Bitcoin is forecast to fall below $ 30k and Ether below $ 2,000 for the next three to six months. Bitcoin and Ether are among the best currencies available today, which means that they will decline less than the rest of their yet-to-be-tested competitors."
โGravity will also be greater than 9.8 m / s for any particular application that uses the Bitcoin or Ether blockchain. If there was no crypto risk, these altcoins could go down between 75% and 90% ", Hayes said.
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Additionally, Hayes says that you can start taking a second look at the value of Bitcoin and Ethereum if they correct below their previous bull market highs.
He said, "In Case Bitcoin Drops Below $ 20k or Ether falls below $ 1400, I wonder if these cryptocurrencies can survive in terms of energy costs."
"It was at those two levels that the 2017 bull market reached its previous all-time highs. The fiat price is what matters, if oil falls again, who cares? If the reference cryptocurrencies get less units of fiat as a result?"
As of this writing, the flagship cryptocurrency is trading at $ 42,000 on the FTX exchange, down 21% from its 30-day high of $ 50.8,000, while Ether is trading at $ 3,134, down 35% from its 30 day maximum of $ 4.1k
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Additionally, Bitcoin could come under downward pressure if US inflation data is higher than expected on Wednesday.
Consumer prices are expected to rise 7.1% in the year to December and 0.4% monthly, according to the widely followed consumer price index (CPI). As a result of this increase, officials at the US Federal Reserve are pushing for a faster normalization of monetary policy than initially anticipated.
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Crypto assets are at the riskier end of the risk curve, and since they benefited from the Fed's "extraordinarily loose monetary policy", it would be logical to expect them to suffer when an "unexpectedly tighter" policy shifts money to assets. more secure.
However, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone said that $ 4OK was a major support level in the Bitcoin market. Furthermore, he thought that as the world goes digital and BTC is treated as collateral, the pioneering crypto will eventually emerge from its bearish phase.
