CEO BitMEX Arthur Hayes criticized Ethereum, called it “shitcoin” and predicted the collapse of the price below $ 100.
As Hayes writes in the final digest for traders, the take-off of Ethereum took place during the ICO boom, which began in early 2017. In his opinion, during the period of active distribution of ICO, a large number of new venture investors came to the market, having neither experience nor knowledge.
Hayes notes that today many venture investors are selling their tokens against the backdrop of a drop in their value. Now, in a falling market, they sell tokens at any price, which increases panic no less. If you do not sell, and the market continues to fall, then you will lose your job. But no one buys them, as the funds of ordinary investors do not reach the level of institutional investors. “So the market is falling – at first the prices for tokens, and then on ETH,” the head of BitMEX announced.
According to Hayes, today’s drop in Ethereum is likely to continue to the levels of the previous year’s spring, when the cryptocurrency was worth less than $ 100.
In his letter, Arthur Hayes also touched upon the question of the “local bottom” for bitcoin, suggesting that this mark is likely to be in the region of $ 5,000. The 2nd by capitalization of the cryptocurrency, which many consider being the main rival of bitcoin, traded at $ 250 from the beginning of the week and fell by 20% in the last seven days after returning to $ 292 (according to CoinMarketCap). This will happen, in his opinion, if the US financial regulators will pull with positive news.
According to Hayes, if the bitcoin price drops to this level, Chinese miners will start moving to other countries to continue their work. If the rate of bitcoin drops to $ 3000- $ 4000, the miners will stop using the equipment because of lack of profitability.
This fall in price, however, was expected and predicted by our analyst Jeremy Oles in his article When will Bitcoin change its trend?!