February 5, 2023

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

Article reading time:
2 minutes.

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

The founder and former CEO of crypto exchange BitMEX, looking into option liquidations, believes the market could expect a global sell-off.

Arthur Hayes stated that ifbitcoin falls below $20,000 and Ethereum falls below $1,000, then a massive crypto sell-off will begin. The expert builds his theory on the study of data on options from the Deribit exchange, believing that a breakthrough of these levels of BTC and ETH will lead to strong pressure from sellers.

Hayes notes that data on wrapped bitcoinsand Ethers show that investors are liquidating many positions. And the most alarming signal is the information from Deribit, according to which the special interest in BTC is $20,000, and $1,000 in $ETH.

The BitMEX founder claims that these marks are psychological levels for assets that have not been in a similar state since 2020.

"As for charts, you'd better getprayer book to Lord Satoshi and hope that he will show kindness to the soul of the cryptocurrency markets. If these levels break, you can shut down your computer because your graphs will be useless for a while,” Hayes warns.

During the day, BTC was sold for $513 million and ETH for$ 306 million. Quotes are getting closer to the price set in the option, the creator of the crypto exchange states. Some dealers will not be able to properly hedge risk, resulting in huge losses. In the event of a massive sell-off, the crypto winter could drag on for some time, Hayes warns.

In April, the former CEO of a cryptocurrency derivatives exchange said that the crypto market was going to fall, with Bitcoin dropping to $30,000 and Ether to $2,500 by the end of the second quarter.