Former BitMEX chief said bitcoin and Ethereum reached local bottom

Arthur Hayes believes that the rates of the leading cryptocurrencies will not drop below $25 000 and $1 700 respectively

02.06.2022 - 09:30

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What’s new? Arthur Hayes, the former co-founder of cryptocurrency exchange BitMEX, said that bitcoin and Ethereum rates have already reached a local bottom. In his essay, Hayes traced the major price cycles of the major cryptocurrencies and concluded that the rate of BTC will not fall below $25 000 and ETH — $1 700. In his view, the market recovery should be expected when the US Federal Reserve System (Fed) stops raising its key rate.

Arthur Hayes’ essay

Hayes’ predictions. Earlier, the former BitMEX chief predicted that the rate of ETH would reach $10 000 after the release of an upgrade that would see the network switch to the Proof-of-Stake (PoS) consensus algorithm. In a new essay, he maintained his prediction but noted that due to the geopolitical situation, this could happen a year later.

“The politics must align with the macroeconomic environment to produce the catalyst for crypto to exit the current bear market,” Hayes explained.

Earlier, former BitMEX co-founder said that bitcoin would reach $1 million by the end of the decade. In his view, one of the triggers for the rise in the price of the first cryptocurrency would be an acceleration of inflation. In this, Hayes noted that at the moment we should not expect a sharp rise in the price of the asset to $70 000.

What happened before? In late May, the US court sentenced Hayes to six months of house arrest and two years’ probation for violating the Bank Secrecy Act regarding the lack of procedures for identifying BitMEX exchange customers.

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