BTC Will Crash to $10,000, Says BitMEX Co-Founder Arthur Hayes

The co-founder of BitMEX, Arthur Hayes, believes that Bitcoin will soon crash to $10,000. What can trigger the Bitcoin crash?

The co-founder of the BitMEX exchange, Arthur Hayes, tweeted by attaching a screenshot of a Bloomberg article about the Genesis Bankruptcy. As per the tweet, if Genesis goes bankrupt, Bitcoin could crash to $10,000.

The community questions Arthur if he has been accurate with any price targets from the last few months. They call him out for switching from $10,000 Ethereum price predictions to $10,000 Bitcoin price predictions.

Some even believe that the founder of BitMEX is bearish because he bought Bitcoin puts.

The Genesis Bankruptcy

Last week, the lending entity Genesis Global Capitals announced that it has temporarily suspended redemptions and new loan originations due to “abnormal withdrawal requests.” The company has a liquidity crunch due to the default of Three Arrows Capital and the recent collapse of FTX

According to the Bloomberg report, Genesis is trying to raise funding of $1 billion for its lending unit. Genesis may file for bankruptcy if it fails to raise the funding. Recently it is reported that Genesis may cut its capital raise to $500 million.

Genesis Timeline
November 8: “No material net credit exposure”
November 9: We lost $7M
November 10: Okay, we have $175M locked in FTX
November 16: Sorry, no withdrawals or new loans
November 17: Okay, we need $1BN
November 21: We’ll go bankrupt without the money
👍
— Cred (@CryptoCred) November 21, 2022

Can Genesis Bankruptcy Eventually Lead to a Bitcoin Crash to $10,000?

Genesis is owned by the Digital Currency Group that controls one of the largest investment vehicles, The Grayscale Bitcoin Trust (GBTC). It has over $10 billion in assets under management. Chahal Verma, a crypto influencer on Twitter, believes that if Genesis goes down, it can have a much more significant impact on the market than FTX.

The collapse of Genesis will likely impact Grayscale as well. The crypto trader shares his point of view on how Bitcoin can crash below $10,000

Grayscale owns 3.3% of the #Bitcoin market cap. LUNA owned only 80k BTC, while Grayscale owns 640k BTC.
If Grayscale is forced to sell their 640k BTC, the price is expected to drop by 46% which would send us to $8900
Just want to show you, how unlikely 10k is
— Doctor Profit 🇨🇭 (@DrProfitCrypto) November 20, 2022

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Source: https://beincrypto.com/btc-will-crash-to-10000-says-bitmex-co-founder-arthur-hayes/