On-chain analysts say that the BitMEX founder recently sold off three types of coins.
Is the cryptocurrency market changing direction? On-chain analyst Lookonchain recently pointed out that a cryptocurrency wallet address marked as Arthur Hayes (founder and former CEO of BitMEX) has recently undergone large-scale selling operations.
Lookonchain monitored that Hayes sold $8.32 million worth of Ethereum ($ETH), $4.62 million of Ethena ($ENA) tokens, and $414,700 of Pepe Coin ($PEPE), totaling over $13 million in sales.
According to Arkham's data, as of August 3, Hayes' crypto wallet held $28.3 million worth of cryptocurrency, with $22.95 million in stablecoin $USDC, indicating he has converted most of his assets into cash equivalents.
Three major bearish factors could send Bitcoin crashing back to 100,000.
In response to Lookonchain's post, Arthur Hayes immediately replied and explained his reasons for selling.
Hayes pointed out three major bearish factors in the cryptocurrency market, including new tariff rates announced by the U.S., weak credit expansion in major global economies, and disappointing U.S. non-farm payroll data for July, which showed only 73,000 new jobs added.
Hayes stated that currently, no major economy has a credit expansion rate sufficient to boost nominal GDP, which could lead to a correction in the cryptocurrency market.
He predicts that Bitcoin may fall to $100,000, while Ethereum could drop to around $3,000. If his prediction comes true, it would mean Bitcoin would have corrected 18.7% from its historical high of $123,000.
Source: X Arthur Hayes: Three major bearish factors could send Bitcoin crashing back to 100,000.
CoinGlass data shows that from August 1 to 3, the cryptocurrency perpetual contract market saw over $1.3 billion in liquidations, with over $1 billion liquidated on August 1 alone.
CoinMarketCap data shows that the total market capitalization of cryptocurrencies has slightly declined from a peak of $3.94 trillion on July 18 to the current $3.73 trillion.
Hayes previously predicted Bitcoin would reach 250,000 by the end of the year.
Although he is not optimistic about Bitcoin's short-term performance, Hayes previously predicted that by the end of 2025, Bitcoin could soar to 250,000, and Ethereum could potentially exceed 10,000. His bullish outlook is based on the explosion of U.S. military spending and strategic business investments, believing that the U.S. economy is entering a wartime-like phase of credit expansion.
Additionally, he believes the cryptocurrency market is entering a moment of favorable policy direction, with the passage of the stablecoin bill (GENIUS Act), the Trump administration will continue to inject new life into the cryptocurrency industry through tax cuts and regulatory easing.
Further Reading:
With war breaking out and debt swelling! Why does Arthur expect Bitcoin to soar to 250,000 and Ethereum to break 10,000?
Industry Analyst: Bitcoin's volatility has significantly decreased.
Although Hayes believes Bitcoin may crash back to $100,000, some industry analysts dispute this, claiming that Bitcoin has already moved past the era of significant intraday corrections (over 10%).
Bloomberg ETF analyst Eric Balchunas noted that since BlackRock submitted its Bitcoin spot ETF application in June 2023, Bitcoin's volatility has diminished, and there has been no 'nauseating crash'; Blockware Solutions chief analyst Mitchell Askew added, 'The era of Bitcoin parabolic bull markets and devastating bear markets is over.'
These analysts believe that as institutional investors participate and financial instruments like ETFs are introduced, the Bitcoin market has matured, and the likelihood of significant volatility is decreasing.
'BitMEX Founder: Bitcoin may crash back to 100,000! On-chain data shows he has sold these 3 coins' was first published in 'Crypto City.'
