Former BitMEX CEO calls conditions for Ethereum to rise to $5000

Arthur Hayes believes that the increase in value of the asset will be in the first quarter of 2023

06.08.2022 - 07:30

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What’s new? The former head of the BitMEX cryptocurrency exchange Arthur Hayes expects Ethereum’s value to reach $5000 by the end of Q1 2023. His prediction is based on two factors: a loosening of monetary policy by the US Federal Reserve System (Fed) and the network’s successful transition to the Proof of Stake (PoS) consensus algorithm. According to him, the combination of these conditions will boost the price of the second-largest cryptocurrency.

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What else does Hayes say? In a blog post, he noted that Ethereum is likely to generate more profits than bitcoin during the remainder of 2022. The former head of BitMEX said that he has reached out to some members of the Chinese Ethereum mining community who are planning to organize a network hard fork to continue using the Proof of Work (PoW) algorithm.

The Fed has been tightening monetary policy for months now, trying to contain record-high inflation. Its actions have greatly contributed to the sell-off in both equity and cryptocurrency markets. Hayes believes that the Fed is likely to reverse this trend within a few months and return to printing money to protect the economy. This will have a positive effect on the growth of cryptocurrency rates, including the value of ETH.

As of August 6, 07:05 UTC, the asset is trading at $1723, having gained 3,83% per day, according to Binance.

Earlier, analysts at Santiment discovered a factor that could indicate the start of Ethereum’s bullish phase. Experts advised keeping an eye on the decline in supply volumes at ETH exchange addresses as a signal to the growth of the asset’s rate.

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