Arthur Hayes: If BTC and ETH fall even more, crypto winter will come

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The founder and former CEO of the BitMEX crypto exchange, studying cases of options liquidation, believes that the market may be in for a global sell-off.

Arthur Hayes stated thatIf Bitcoin falls below $20,000 and Ether below $1,000, there will be a massive cryptocurrency sell-off. The expert builds his theory on studying options data from the Deribit exchange, believing that a breakthrough of these BTC and ETH levels will lead to strong selling pressure.

Hayes notes that data on wrappedBitcoin and Ethereum shows that investors are liquidating many positions. And the most alarming signal is information from Deribit, according to which special interest in BTC is $20,000, and for $ETH - $1 000.

The BitMEX founder claims that these marks are psychological levels for assets that have not been at this level since 2020.

"As for charts, you better getLord Satoshi's prayer book and hope that he will show kindness to the soul of the cryptocurrency markets. If these levels break, you might want to turn off your computer because your charts will be useless for a while,” warns Hayes.

$513 million worth of BTC and ETH were sold within 24 hoursby $306 million. Quotes are getting closer to the price set in the option, states the creator of the crypto exchange. Some dealers will fail to hedge risks properly, resulting in huge losses. In the event of massive sales, the crypto winter could last for some time, Hayes warns.

In April, the former CEO of the cryptocurrency derivatives exchange said that the crypto market would fall, and by the end of the second quarter, Bitcoin would drop to $30,000 and Ethereum to $2 500.

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