Bitcoin Price Plummets to $53,000: Arthur Hayes Predicts Further Declines Ahead
On Friday, Bitcoin’s price experienced a significant decline, dropping below $53,000 and marking its lowest point since the turbulent event referred to as “Black Monday” in early August. This decrease aligns with the forecast made by Arthur Hayes, the co-founder of BitMEX, who anticipates that further declines are possible for cryptocurrency investors.
At 1:25 PM UTC, Bitcoin was valued at $56,925; however, by 8:55 PM UTC, it plummeted to $52,871—ultimately trading at $53,500 at the time of this report. Prior to this event, Hayes had suggested that Bitcoin could face even harsher conditions over the forthcoming weekend. In a recent tweet, he expressed, “BTC is heavy, I am gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.”
Earlier in August, Bitcoin had briefly fallen below the $50,000 threshold following the Bank of Japan’s decision to raise interest rates for the first time in over a decade. However, a swift rebound occurred after the Bank of Japan assured the market it would maintain stability by refraining from further rate hikes.
Nevertheless, both Bitcoin and the stock market are currently under pressure as recent unfavorable economic data from the United States indicates a potential recession on the horizon. In a statement made on Tuesday, Hayes indicated that he foresees a gradual decline of Bitcoin toward the $50,000 mark, attributing this situation to increased deposits in the Federal Reserve’s Reverse Repo Program, which he believes is draining liquidity from the market.
In an essay discussing the situation, Hayes noted that while his pessimistic outlook is temporary, he expects it to persist until the end of the month, at which point he anticipates increased liquidity injections from the Federal Reserve and the U.S. Treasury will stabilize the market. He stated, “I expect intervention to begin in late September. Between now and then, Bitcoin will, at best, continue to chop, and altcoins could dive deeper into the gutter.”
In conclusion, market participants should remain vigilant as they navigate this uncertain economic environment, keeping an eye on the potential interventions from financial authorities that may impact cryptocurrency valuations over the coming weeks.
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