The price of Ethereum (ETH) has surpassed $4200, prompting Arthur Hayes, co-founder of BitMEX, to buy back the currency shortly after his large sale. At the beginning of the month, Hayes purchased Ethereum as its price rose, although a week prior he had sold a significant amount of alternative coins worth $8.32 million, expecting a price drop.
Hayes' expectations were based on the U.S. Federal Reserve's decision to keep interest rates unchanged, alongside geopolitical tensions related to U.S. foreign policy and military actions, which he believed could lead to volatility in the cryptocurrency market. Accordingly, Hayes predicted that the price of Ethereum would drop to $3000.
But things took a turn; Ethereum experienced a strong rise within a week, with its price increasing by about 20%, surpassing $4200. After this sudden rise, Hayes indicated on social media that he had to buy back all the coins he had sold, expressing his astonishment at market movements.
This rise comes amid similar gains witnessed by many other cryptocurrencies. Market analyst Michael van de Poppe confirms that the growth cycle in the cryptocurrency market is still in its early stages, expecting a significant increase in the prices of alternative coins, including Ethereum, ranging from 200% to 500% over the coming months.
On the other hand, the rapid rise was not without losses, as data from Lookonchain reveals that a trader holding the address 0xcB92 faced a complete liquidation after the price reached $4200, with losses exceeding $15.85 million, highlighting the speed of market fluctuations and the changing sentiments among investors.
In the long term, investment firm VanEck provides positive forecasts about the future of Ethereum, expecting the price of the currency to reach $22000 by 2030. These predictions are based on Ethereum's fundamental role in supporting decentralized applications, the increasing interest from institutional investors, and the rising activity on the Ethereum network. It also indicates the potential for Ethereum's market capitalization to reach $2.2 trillion, with an estimated annual growth rate of about 38% over the coming years.
VanEck analysts recommend integrating Ethereum alongside Bitcoin in investment portfolios, due to its increasing importance in the cryptocurrency market. Arthur Hayes' move to buy back Ethereum after quickly selling it illustrates the difficulty of predicting price movements and the sharp volatility experienced in cryptocurrency markets.
Thus, with increasing long-term positive expectations from major institutions, Ethereum remains at the heart of the discussion about its future and whether it has entered a new growth cycle that will continue in the near and distant future.