The bitcoin price has recently topped $23,000, hitting its highest number in about six months, but while things are looking good for crypto, not everyone is happy. According to figures like former chief executive of BitMEX Arthur Hayes, a global crash is coming that could wipe out BTC and all its altcoin cousins.
Arthur Hayes Is Predicting Gloom and Doom for BTC
Some investors and analysts are reigning in the positivity. Marcus Sotiriou – market analyst at digital asset broker Global Block – stated in a recent interview:
Bitcoin continued its surge over the weekend, rising to a peak of around $23,400. This has left a CME gap on the bitcoin CME futures chart at around $22,400, which many analysts theorize is a magnet for price. There are also CME gaps at around $17,000 and $20,000, which were formed on this recent aggressive move.
Alex Kuptsikevich – senior market analyst at FX Pro – also threw his two cents into the mix, commenting:
Bitcoin has started a new bull market and is headed for $24,000, where the psychologically important 200-week moving average and the 161.8 percent Fibonacci level of the momentum from the December lows are concentrated. The 50-week moving average is headed to the same area. The market may need a long recharge and consolidation before a new upside wave begins.
By contrast, Hayes thinks the worst is yet to come. In a blog post, the former crypto head wrote:
Bitcoin is simply experiencing a natural bounce off the local lows of sub $16,000. Bitcoin is rallying because the market is frontrunning a resumption.
Hayes believes that eventually, money printing in the U.S. is going to get so crazy that all other assets – from crypto to stocks – will come crashing down in violent fashion. He continued the blog with:
If the Fed does not follow through with a pivot, or multiple Fed governors talk down any expectation of a pivot even after ‘good’ consumer price index (CPI) prints, bitcoin will likely crash back down towards previous lows… Bonds, equities, and every crypto under the sun all get smoked as the glue that holds together the global USD-based financial system dissolves.
He concluded with:
It doesn’t really matter what level is ultimately reached on the down draft because I know the Fed will subsequently move to print money and avert another financial collapse, which will in turn mark the local bottom of all risky assets.
What Will the Fed Do Next?
There is an issue according to market analyst Noelle Acheson, who recently stated that despite comments suggesting the contrary, the idea is building that the Fed is going to take it easy in 2023 when compared with the previous 12 months. She said:
Market anticipation of a rate hike pause and even a Fed pivot has been building in spite of repeated Fed official comments to the contrary.