BitMEX Co-Founder Forecasts Bitcoin Price Dip Below $40K

• Hayes predicted that the Bitcoin price would stay low until January 31.
• As investors wait for key macro developments, he predicts liquidity issues in the markets.

The co-founder of BitMEX, Arthur Hayes, recently predicted that Bitcoin prices would go under $40,000 in a fresh forecast made on Monday. The approaching US Treasury quarterly refunding statement and a long-term projection of $5,000 for Ethereum (ETH) and $200 for Solana (SOL) have both contributed to the shift in mood. On January 22, the crypto exchange co-founder and billionaire expressed his pessimistic view on Bitcoin in a twitter post.

In addition, he predicted that the Bitcoin price would stay low until January 31, when the United States Treasury will reveal its quarterly refunding announcement. US Treasury Secretary Janet Yellen’s unfavorable comments have the potential to drive down the price of Bitcoin even more, but the community is still waiting for a significant change in momentum.

Liquidity Issues 

After the U.S Bitcoin ETF, Arthur Hayes said in his earlier post today that the SPX and BTC no longer rose in tandem. As investors wait for important macro developments, he predicts liquidity issues in the markets.

According to Coinglass statistics, $140 million has been liquidated in the last 24 hours. Recently, more than 63,000 traders were liquidated. The liquidation of over $40 million followed Hayes’ twitter post.

The price of Bitcoin continued to decrease and even broke under $40,500 level. On a macro level, Bitcoin is being sold due to the growing rates on U.S 10-year treasury yields and the strengthening U.S dollar.

After a few days of consolidating, the price of Bitcoin dropped sharply. The price of bitcoin has dropped below $40,500 due to severe selling pressure. A general decline in the cryptocurrency market has been seen as a consequence of this. At the time of writing, bitcoin is trading at $40,631, down 2.31% in the last 24 hours.

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