Arthur Hayes warns of a crypto crash but stays optimistic about Bitcoin and altcoins’ long-term growth.
Arthur Hayes, the co-founder of BitMEX, has sparked debate in the digital asset sector by predicting a forthcoming crypto market collapse.
Particularly in light of the increasing optimism regarding pro-crypto regulations and the establishment of a Bitcoin strategic reserve in the United States, these remarks have further fueled speculation.
Additionally, it coincides with the broader market’s recent decline, which has prompted investors to investigate potential causes for the most recent decline.
Arthur Hayes Forecasts Cryptocurrency Market Collapse
According to Arthur Hayes’s most recent blog post, the co-founder of BitMEX anticipates a crypto market collapse within the next month.
This comment has sparked speculation, particularly in light of the recent robust rally in Bitcoin and other prominent altcoins.
Nevertheless, it seems that the expert is still sanguine about the long-term trajectory of BTC and the broader market, despite the bleak predictions.
Arthur Hayes stated in his most recent blog that the crypto rally commenced with Donald Trump’s election victory in November.
It is important to note that Trump’s commitment to establishing the United States as the “crypto capital” and his mention of a Bitcoin Strategic Reserve have contributed to market optimism, which has resulted in sector gains.
Although Arthur Hayes also praised the Bitcoin Strategic Reserve (BSR) development, he also stated, “I still do not believe that BSR will happen.”
He thinks that politicians would prefer to allocate newly created dollars to public products rather than invest in Bitcoin.
Nevertheless, he maintained his optimism regarding the long-term trajectory of BTC, observing that the mere discussions regarding BSR have generated a “buying pressure” in the market.
Furthermore, he declared:
“While I don’t believe the US government will purchase Bitcoin, it doesn’t affect my positive price outlook.”
Hayes anticipates that BTC will experience short-term corrections as it approaches the $1 million milestone, despite the optimism.
Furthermore, he predicted that a crypto market collapse is imminent in January, specifically on January 20, the day of Trump’s inauguration.
Nevertheless, he stated that the market will experience a “crack-up-boom phase” in the crypto bull market following the “harrowing dump,” despite the bleak outlook.
Bitcoin, Altcoins Are Experiencing Decline, Which Has Sparked Speculation
Bitcoin and other cryptocurrencies have experienced a substantial increase in value as a result of the recent global trend toward digital assets.
It is worth noting that EU legislators have also recently advocated for a Bitcoin Strategic Reserve, in response to the global commotion that ensued after Donald Trump suggested that the United States might implement a comparable measure.
The market sentiment appeared to have remained high in light of all of these factors. Nevertheless, the recent market decline has exacerbated rumors.
Furthermore, Arthur Hayes’s cautionary remarks regarding an imminent crypto market collapse have exacerbated market discourse.
It seems that certain investors are taking profits following the recent significant rally, which has had an impact on the overall market performance.
Additionally, market participants may be taking a break in anticipation of the US FOMC’s meeting later today, which would offer insights into the Fed’s policy posture on rate cuts and the overall health of the economy.
Current State Of Cryptocurrency Market?
Arthur Hayes’s prediction of a crypto market collapse further dampened sentiments, resulting in a nearly 3% decline in the global crypto market cap to $3.64 trillion today.
Today, the price of bitcoin experienced a 2.5% decline to $104,140, following its recent ascent to its all-time high of $108,268.45 within the past 24 hours.
BTC recorded monthly gains of 13%, despite the recent decline.
In contrast, Ethereum’s most recent price, which was $3,851, experienced a 4% decline a day after the cryptocurrency briefly surpassed the $4K threshold.
Despite the recent optimism surrounding the RLUSD launch and the surging whale activity, the price of Cardano experienced a 4% decline, while XRP experienced a 1% decline.
Today, Dogecoin’s price declined by nearly 4% to $0.3845, among the most popular meme tokens.
Conversely, the price of Shiba Inu experienced a 5% decline, while Pepe Coin retreated by over 7% in the past 24 hours.
Nevertheless, it seems that market specialists maintained a positive outlook on the sector’s long-term prospects, despite the recent setback observed in the broader digital assets space.