Arthur Hayes predicted the continued correction of the bitcoin price
Forced liquidation of positions in the near future will put further pressure on the price of bitcoin. This opinion was expressed by the founder and ex-CEO of BitMEX exchange Arthur Hayes.
He drew attention to the liquidation of 24,500 BTC by the Canadian Purpose Bitcoin ETF (BTCC) in the evening of June 17, shortly before the close of trading.
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— Arthur Hayes (@CryptoHayes) June 19, 2022
BTCC – Purpose ETF puked 24,500 $BTC into the North American Friday close. I'm not sure how they execute redemptions but that's a lot of physical BTC to sell in a small time frame. pic.twitter.com/BY7foKdPjY
“I’m not sure how they redeem, but that’s a lot of physical bitcoins to sell in a short time,” the expert said.
With fiat channels closed over the weekend, the BTC price fell to a low of $17,600 with high trading volume, Hayes noted. After a dump of nearly 20%, the market quickly rose already on low volume. According to him, it looks as if a forced seller “triggered a raid on stop-losses.”
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— Arthur Hayes (@CryptoHayes) June 19, 2022
Over the weekend, while the fiat rails are closed, $BTC dropped to a low of $17,600 down almost 20% from Friday on good volume. Smells like a forced seller triggered a run on stops. pic.twitter.com/X01FnDw1IL
“Given the poor state of risk management by cryptocurrency lenders and overly generous terms, expect more pockets of forced selling of BTC and ETH as the market figures out who is swimming naked,” Hayes wrote.
However, he believes it will provide experienced investors with an opportunity to buy “coins from those who are forced to sell, regardless of the price.
Earlier, Euro Pacific Capital President Peter Schiff warned that bitcoin’s return to above $20,000 does not mean it has pushed back from the bottom. In his opinion, the cryptocurrency will test a level around $5,000.
DoubleLine Capital head Jeffrey Gundlach said he wouldn’t be surprised to see bitcoin fall to the $10,000 level.
In April, Hayes predicted a market crash by the end of the first half of the year. He believed bitcoin and Ethereum would test the $30,000 and $2,500 levels, respectively, by that point.
Quotes of the leading cryptocurrencies fell below those levels in May.
In early June, Hayes said that bitcoin, which was trading around $30,000 at the time, had reached the bottom of the current cycle.
As a reminder, the 2021 Purpose Bitcoin ETF became the first exchange-traded bitcoin fund to be approved by Canada’s regulator.
