Arthur Hayes, Who Sold His Cryptos, Said That Bitcoin and Ethereum Will Drop to These Prices!
Arthur Hayes suggested that the upcoming tax collection in the US will seriously pressure the market in the third quarter, and that the price of Bitcoin (BTC) could drop to 100 thousand dollars, while the price of Ethereum (ETH) could fall to 3 thousand dollars.
Arthur Hayes, the founder of BitMEX, believes that macroeconomic pressures will increase following the tax payments in the third quarter in the US. According to Hayes, markets think that economic difficulties will increase after the non-farm payroll (NFP) data, and no major economy is creating credit at a pace that would support growth in nominal gross domestic product (GDP).
In light of this picture, Arthur Hayes expects significant declines in the prices of Bitcoin and Ethereum. The experienced analyst predicts that Bitcoin will test the level of 100 thousand dollars, while Ethereum will test 3 thousand dollars.
Credit Production is Sounding the Alarm
The striking part of Hayes's statements was his indication of a decline in the rate of credit creation in major economies. According to him, the current rate of credit production is falling below the level needed to meet the growth targets of economies. This situation is said to potentially create liquidity issues in the markets and exert downward pressure on cryptocurrency prices.
Arthur Hayes also announced that he will present his detailed analysis at the WebX Asia event, which will take place in Tokyo on August 25.
