- According to Arthur Hayes, co-founder of crypto trading platform BitMEX, Bitcoin's tendency to fluctuate in tandem with technology stocks suggests the largest cryptocurrency might fall to $30,000 by June, Bloomberg reports.
- In a blog post on Monday, Hayes stated that the same mechanism might propel Ether to $2,500. At 12:43 p.m. in Hong Kong, the tokens were worth roughly $42,300 and $3,180, respectively. Hayes stated that he is purchasing "crash" puts on both coins that expire in June while also noting that he is in a "long crypto position" overall.
- Bitcoin's 90-day correlation with the Nasdaq 100 is at an all-time high, undermining the token's appeal as a diversification tool. According to Hayes, the combination of slowing global growth and less accommodative central banks will weigh on tech stocks and, by implication, crypto. He admitted that his expectations for Bitcoin and Ether are primarily based on "gut instinct."
- Crypto markets "will lead equities lower as we head into the downturn, and lead equities higher as we work our way out of it," he wrote. "Bitcoin and Ether will bottom well before the Fed acts and U-turns its policy from tight to loose."
- "There are many crypto market pundits who believe the worst is over," Hayes wrote in his latest post. "I believe they ignore the inconvenient truth" that crypto prices are currently an indicator for the S&P 500 and Nasdaq 100 "and do not trade on the fundamentals of being peer-to-peer, decentralized, censorship-resistant digital networks designed for the transfer of money."
- Photo by andre-francois-mckenzie via Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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