In two weeks, there will be a “final showdown” between weak hands and a bidless crypto market, according to Arthur Hayes, the former CEO of cryptocurrency derivatives trading exchange BitMEX.
Arthur Hayes Predicts Bearish Market Showdown
“[As] I look at the northern hemispheric summer calendar, there is one particular weekend that strikes me as a likely candidate to host the final showdown between panic sellers and a bidless market — the weekend of July 4,” Hayes said in a detailed blog post.
In his article, Hayes noted several factors behind his prediction.
The former BitMEX executive stated that central bank policymakers’ activities impact the prices of crypto assets. He referenced two examples, the first being the European Central Bank (ECB), which will soon implement its first rate hike.
The second reference was the U.S. Federal Reserve, which had just begun its balance sheet reduction earlier this month. The massive sell-off on Monday was attributed to news about the Fed hiking interest rates.
After suggesting that these activities will significantly affect the price of crypto assets around the end of June, Hayes then focused on the weekend of July 4.
A Wide Ride to the Downside
July 4, which falls on a Monday, marks the 246th Independence Day celebration in the United States, and financial institutions across the country will be on holiday.
According to Arthur Hayes, this means that huge transactions from crypto investors who wish to buy the dip will not go through during the weekend until business hours on July 5. As a result, investors seeking to liquidate their funds from the crypto market will be affected.
Hayes believes the crypto market will see “a wild ride to the downside” between June 30 and July 5. He added that Bitcoin and Ethereum might not see a significant downtrend, but other cryptocurrencies, which he described as “the shitcoin complex,” will most likely suffer massive losses.
However, Hayes outlined that he is bullish on several crypto projects, including Uniswap, Sushiswap, and Ethereum Name Service (ENS).
Source: https://coinfomania.com/arthur-hayes-july-4th-crypto-prediction/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=arthur-hayes-july-4th-crypto-prediction