Bitmex Founder Says He Is Willing To Sell Fiat For Ethereum, As ETH Is Trading 76% Below His Model Price of $2815

BitMex and 100x leverage Founder Arthur Hayes Super Bullish On Ethereum As The Merge Edges Closer. Arthur Hayes says he is  “MAX BIDDING” on Ether.

In his latest medium blog post, Arthur Hayes expressed very bullish sentiments on Ethereum, saying “MAX BIDDING Ether” and “MAX SELLING Fiat.”

According to Hayes, as of Thursday, Ethereum futures were grossly undervalued. For example, Hayes noted that the Deribit 31 March 2023 ETH/USD futures contract was trading at $1,587, 44% below his model future price of $2,815.

“If ETH is currently trading 76% cheaper vs. my model, then I am willing to sell fiat and purchase Ether today. I get an added bonus because I will receive equal tokens from any PoW Ether fork that appears.”

Hayes revealed that following this analysis, he purchased December 2022 options with a strike price of $3,000 as he is super bullish on the Ethereum merge. Consequently, the BitMex founder says he also has plans to add to his spot positions to maximize his Eth exposure and capitalize on lapses in market pricing.

Hayes believes that following the Ethereum merge, holders will not dump their holdings for a profit, “buy the rumor, sell the news” will not occur as the asset becomes deflationary. According to Hayes, in addition to this, the rate of deflation is expected to grow as DeFi adoption increases Ethereum use cases.

It is worth noting that Ethereum founder Vitalik Buterin in an interview at the just concluded EthCC, said that the Ethereum merge is yet to be priced in. According to Buterin, the full ramifications can only be priced in after it happens.

The merge would see Ethereum migrate from the proof-of-work (PoW) consensus system to proof-of-stake (PoS), cutting down its energy consumption and massively boosting its throughput. The merge is now only over a month away, provided all goes well with the fork on Goerli, the final testnet. Notably, the merge on Goerli is slated to take place from tomorrow.

Despite his legal woes, it is worth noting that Hayes has built a reputation as a market analyst over the years. For example, in April, Hayes predicted that Bitcoin would eventually clinch the $1 million price mark. He believes there would be a flight to stores of value as world reserve currencies weaken. According to Hayes, this process which he termed the Doom Loop, has already kicked off following dollar-euro parity.

Notably, Ethereum had a good month in July, surging by over 55% and driving a lot of market speculation. At the time of writing, the asset is trading at the $1,669 price point, up 1.28% in the last 24 hours but down 3.35% in the last seven days.

– Advertisement –