bitmex co-founder Arthur Hayes said that a new drop in Bitcoin (BTC) and Ethereum (ETH) prices below their current threshold could be disastrous for the market.
Hayes tweeted that if the price of Bitcoin fell below the $20k mark, there would be an increase in the spot sale of the digital asset. He added that the same situation would occur if Ethereum fell below $1000. “We can expect massive selling pressure in spot markets as dealers hedge,” Hayes said.
Here we go …
Looking at string data for $wBTC Y $ETH, liquidations have mostly occurred. data visualization @parsec_finanzas
—Arthur Hayes (@CryptoHayes) June 14, 2022
Hayes noted that in addition to the listed entries, there is a massive volume of the OTC market, which is not being tracked by on-chain metrics and indicators.
Arthur Hayes had previously predicted that the price of Bitcoin could reach $1 million one day.
At press time, Bitcoin is trading at $22,578, while Ethereum changes hands at $1,229. The market capitalization of the industry is also less than $1 trillion.
The current slump began after the US Department of Labor released its CPI inflation data last Friday, saying consumer inflation had hit a 40-year high of 8.6% in May.
There is also speculation that the Federal Reserve would announce another interest rate hike in its bid to rein in runaway inflation.
The crypto carnage continues
The current market sell-off has caused huge losses to the crypto industry as holders and companies have suffered massive losses on their investments.
Celsiusa crypto lending platform, was forced suspend withdrawals due to “extreme market conditions”. However, analysts question whether the company is financially solvent.
El Salvador, Microstrategy, Tesla and Block holdings pic.twitter.com/SAAGZqxR3C
– database (@tier10k) June 13, 2022
Meanwhile, large exchange holders like MicroStrategy, El Salvador, and Tesla are currently holding Bitcoin at a loss. According to the available information, microstrategy you currently have bitcoin in almost $1 billion in unrealized losses, while Tesla’s unrealized losses exceed $300 billion.
Crypto exchanges like Coinbase, Crypto.com and others have been forced reduce its size due to the current market situation.
However, despite this rapid decline, investments in Bitcoin are still 73% more profitable than major investment products such as S&P 500, gold, Dow Jones and PIMCO Active Bond ETFs.