Arthur Hayes, Founding Partner of Bitmex, Bitcoin $82,521.86announced that it may fall up to 70,000 dollars in the near future. Hayes emphasized that the 24 %correction in recent weeks is a normal movement in the rise trend, but that the fractures that may be experienced in financial institutions in the United States may force the central banks to a change of policy. It was stated that derivative products and open positions in the markets could trigger fluctuations around 70,000 dollars, while investors should be cautious.
The expected decreases and causes in Bitcoin
Arthur Hayes said that it is technically possible for Bitcoin to decrease from 110,000 dollars to 36 %to $ 70,000. He noted that this correction was a common movement in the rise trends in the history of crypto currency. According to Hayes, the probability of American indices such as S&P 500 and Nasdaq may also put additional pressure on Bitcoin.
Market data show that Bitcoin is trying to balance at $ 82,780. However, especially in the derivative markets, high open positions are expected to lead to harsh price movements in the $ 70,000 zone. Hayes said that if this level is exceeded, the fragile structure of the crypto currency market will become more pronounced.
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Possible Political Changes of Central Banks
Hayes argued that the FED could abandon the quantitative tightening policies of the traditional financial institutions in the USA if traditional financial institutions experienced a serious collapse. Similar steps can be followed by the European Central Bank (ECB) and other major central banks. Political changes are made to support the crypto currency market with the increase in global liquidity.
Hayes underlined that the Central Bank interventions can not solve structural problems even though it provides recovery in the markets in the short term. It was emphasized that investors should review the risk management and be prepared for possible sudden fluctuations. The uncertainties in the global financial system may cause more volatility in the crypto currency market.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
