Bitcoin News: BitMEX CEO, Arthur Hayes predicted in July, that Bitcoin (BTC) will continue to fall and hit $5,000. Even though at the time crypto market’s leading analysts contradicted, Hayes assertion about the market has come true, as Bitcoin falls under $5,000 for the first time in 2018.
The famed chief executive at Hong Kong-based BitMEX claimed that by the year-end Bitcoin will not bottom at $5,800 and fall much further. He stated, “I think we’ve haven’t seen the worst yet.” After nearly a week of tumultuous price action that began on Wednesday, BTC fell in line with Hayes’ prediction.
The dip is attributed to an influx of selling pressure that took many traders aback as most of them expected the token to find stability at $5,600 after Wednesday’s initial sell-off. The sell-off has minced away over $20 billion worth of value from the cryptocurrency market at large.
Has Bitcoin Bottomed Yet?
In his claims, Hayes did mention that the Bitcoin’s bear market could continue well into 2019, he accredits this assertion to his five-year trading experience in Bitcoin and altcoins in this nascent market. Revisiting his initial claims just a few days later, the former Citibank and Deutsche Bank trader/analyst doubled-down on his prediction to months.
He elaborated that all markets in all their shapes and sizes undergo reversal phase. Citing BitMEX Research’s in-depth analysis of Bitcoin’s historical performance, Hayes pointed that the market’s current downtrend purportedly began on March 12th and is likely to last for a minimum of 200 more days.
Furthermore, this implies that cryptocurrencies could fall even lower, as BTC’s “peak-to-trough” (PTT) decline was divulged to be only at 67%, compared to digital asset’s historical PTT declines of 87% and 94%. Also noting the volatility aspect of Bitcoin, Hayes elaborated that the BTC “require volatility” to eventually reclaim its position as the price fluctuations of the token are the “best and most transparent way” to express the health, performance, and maturation of this industry.
Observing the decline in volatility, he predicted that prices “will slowly leak lower” to a prospective low of $2,000, which according to him will be a “sweet spot”. However, some analysts oppose the conviction of Hayes and his team predictions as they believe that a number of fundamental and technical factors that should safeguard BTC, even in such bear scenarios.