According to Bloomberg News, the tendency of Bitcoin to move in sync with the technology stocks implies that the largest digital currency may plunge to $30,000 by June, as per Arthur Hayes, the co-founder of crypto trading platform BitMEX.
The possible plunge of Bitcoin in the upcoming months
On Monday, Hayes stated that a similar dynamic could also move Ether to $2500. It was found that the trading of tokens took place at $41,500 and $3,070 respectively in Hong Kong at 6:30 pm. Hayes revealed that he is purchasing “crash” puts that will expire on both coins in June while indicating that he is presently in a “long crypto position“.
Anticipations that a series of hikes in interest rates by the Federal Reserve in the upcoming months may weigh heavy on tech stocks and the crypto market of late, with a loss of 3.6% last week in the NASDAQ 100 index and a brief dip in Bitcoin below $42,000 on Monday. The Federal Reserve might likely have to increase rates beyond 4%, as Goldman Sachs Group Inc. Chief Economist Jan Hatzius said on Friday.
After Hayes and Benjamin Delo, co-founder of BitMEX, admitted that they failed to set up a money-laundering program at the crypto exchange, Hayes is awaiting sentencing.
Bloomberg News reports that the 90-day correlation of Bitcoin with that of NASDAQ 100 is at a record, thereby undermining the appeal of the token as a tool for diversification. The weakening of growth globally coupled with a less accommodative central bank will impact the tech stocks, and by crypto and extension, said Hayes. He acknowledged that his anticipations for the largest cryptocurrency and Ether are based mainly on his gut feeling.
Hayes recently sounded a note of caution on the short-term prospects related to digital assets.
Hayes has also written that many crypto market experts believe that the worst is gone in his recent post. He also said that many ignore the bitter truth that these days cost of crypto indicates both the NASDAQ 100 and S&P 500 indices and don’t trade on the basics like peer-to-peer, censorship-resistant digital networks, decentralized, and those designed for the transfer of cash.
