As a seasoned crypto investor with a knack for reading market trends and an uncanny ability to spot early warning signs, I can’t help but feel a sense of déjà vu as Bitcoin plunges below $53,000 yet again. The parallels with the “Black Monday” in August are hard to ignore, and the words of BitMEX co-founder Arthur Hayes echo ominously in my mind.
On Friday, the value of Bitcoin dropped significantly, falling beneath $53,000 and reaching a point not seen since the “Black Monday” incident that occurred following broader economic upheavals in early August. In simpler terms, the price of Bitcoin plummeted on Friday, dropping below $53,000 and hitting its lowest point since the market turmoil in early August, which was referred to as “Black Monday.
It seems that the recent collapse has indeed validated the forecast made by Arthur Hayes, one of the co-founders of BitMEX, suggesting there might yet be further hardships ahead for cryptocurrency owners.
- Bitcoin traded for $56,925 at 1:25 PM UTC, before collapsing to $52,871 by 8:55 PM UTC. It trades for $53,500 at writing time.
On Thursday, Hayes predicted that Bitcoin could plummet even further over the next two days.
“BTC is heavy, I’m gunning for sub $50k this weekend,” he tweeted. “I took a cheeky short. Pray for my soul, for I am a degen.”
In early August, Bitcoin briefly dipped below $50,000 after the Bank of Japan raised interest rates for the first time in over a decade. However, Bitcoin and the broader market quickly recovered as the BOJ promised not to raise rates further so long as it threatened market stability.
Yet Bitcoin and stocks are back on the decline as poor U.S. economic data this week continues to point towards a coming recession.
On Tuesday, Hayes already warned that Bitcoin could “slowly leak toward $50,000,” blaming rising deposits to the Fed’s Reverse Repo Program (RRP) for sucking money out of the broader market.
In his essay, he emphasized that his bearishness is “temporary,” and will likely only last until the end of the month before the Federal Reserve and U.S. Treasury inject the economy with more liquidity.
“I expect intervention to begin in late September,” he said. “Between now and then, Bitcoin will, at best, continue to chop, and altcoins could dive deeper into the gutter.”
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2024-09-07 01:02