February 5, 2023

Arthur Hayes: Bitcoin and Ethereum quotes have already passed the local bottom

Arthur Hayes: Bitcoin and Ethereum quotes have already passed the local bottom

Bitcoin and Ethereum quotes have already reached the bottom of the current cycle, but a reversal of the market trend is to be expected, when the Fed stops raising the key rate. This was stated by the co-founder of the cryptocurrency derivatives exchange BitMEX Arthur Hayes.

Hayes stressed that inflation hasdevastating impact not only on cryptocurrency companies, but also on players in the technology sector - it forces venture investors to reduce their balance sheets.

The ex-CEO of BitMEX noticed that against the backgroundThe collapse of the crypto market disrupted the correlation between digital assets and the Nasdaq 100 index. He also noted that for Bitcoin and Ethereum, each drawdown of the new cycle is still higher than the historical maximum of the previous one.

Arthur Hayes: Bitcoin and Ethereum quotes have already passed the local bottom

Arthur Hayes: Bitcoin and Ethereum quotes have already passed the local bottom

Bitcoin market cycles. Data: BitMEX.

Arthur Hayes: Bitcoin and Ethereum quotes have already passed the local bottom

Arthur Hayes: Bitcoin and Ethereum quotes have already passed the local bottom

Ethereum market cycles. Data: BitMEX.

“There may be an exchange trading on morehigh or low intraday level than what we are seeing. The point is to be generally accurate and approximate the range that can be considered a local bottom. For bitcoin, this is $25,000-$27,000. For ether, from $1,700 to $1,800,” Hayes wrote.

In mid-May, digital gold quotes failed the $27,000 level, Ethereum tested $1,800. In the same month, the first cryptocurrency recorded a record nine-week decline streak.

At the time of writing, Bitcoin is trading near $29,940, while Ethereum is trading near $1,820.

Arthur Hayes: Bitcoin and Ethereum quotes have already passed the local bottom

Arthur Hayes: Bitcoin and Ethereum quotes have already passed the local bottom

Hourly BTC/USDT chart on Binance exchange. Data: Trading View.

Recall, according to JPMorgan analysts, the fair price of bitcoin is at $38,000.