TL;DR Breakdown:
- Arthur Hayes predicts Bitcoin and Ether will decline significantly towards Q3 2022.
- He pointed out a strong level of correlation between Bitcoin and the Nasdaq-100 index.
- Overall, he’s hopeful Ether will have a great year in 2022.
In a recent Medium post, the former co-founder and CEO of BitMEX, Arthur Hayes, predicted that the market price of the two largest cryptocurrencies, Bitcoin and Ether, will plunge in the coming months.
Arthur Hayes goes bearish on BTC, ETH
Hayes opined that the value of Bitcoin could test the $30,000 level before July or the beginning of Q3 2022. He also predicted that Ether would decline to the $2,500 price area by June. The predictions were based on the price correlation between the two leading digital currencies and the Nasdaq-100 stock market index.
In the post, Hayes pointed out that the 90-day correlation between Bitcoin and the Nasdaq-100 rose significantly to a new high. Thus, he expects Bitcoin and other cryptocurrencies to plunge if tech stocks keep underperforming.
Bitcoin and Ether are highly correlated to the Nasdaq 100. If the NDX tanks, it will take crypto down with it.
says Arthur Hayes
Meanwhile, Hayes had made a bullish prediction for the second-largest cryptocurrency earlier this month. He mentioned that the rest of 2022 will be a big moment for Ethereum. “When the dust settles at year-end, I believe ETH will be trading north of $10,000,” Hayes added.
In the past, Arthur Hayes has been quite accurate with his predictions. For instance, he correctly predicted the Bitcoin bull run in 2018.
BTC, ETH market update
At the time of writing, the cryptocurrrency market seems shattered, haven incurred more than a 5% decline on the 24-hour chart. Bitcoin is currently down, trading at $40,838, with Ether at $3,029, according to Coinmarketcap.
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