Altcoin
Arthur Hayes Warns Potential Dip Ahead
BitMEX co-founder Arthur Hayes has sparked discussions in the digital assets space, predicting a crypto market crash ahead. These comments have fueled speculations, especially amid soaring optimism over pro-crypto regulations and a Bitcoin strategic reserve in the US. Besides, it also comes as the broader market experienced a setback today, which has left investors looking for potential reasons behind the latest dip.
Arthur Hayes Predicts Crypto Market Crash Ahead
Arthur Hayes’s recent blog showed that the BitMEX co-founder is expecting a crypto market crash as soon as next month. This comment has fueled speculations, especially as Bitcoin and top altcoins have recorded a robust rally recently. However, despite the gloomy predictions, it appears that the expert remains optimistic on the long-term trajectory of BTC and the broader market.
In his recent Blog, Hayes said that the crypto rally started with Donald Trump’s election victory in November. Notably, Trump’s pledge to make the US the crypto capital and hinting towards a Bitcoin Strategic Reserve has fueled market optimism, which has helped gains in the sector.
While Hayes also lauded the Bitcoin Strategic Reserve (BSR) development, he also said “I still don’t believe that BSR will happen.” He believes that politicians would rather spend newly created dollars on public goods than invest in Bitcoin. Despite that, he remained optimistic about the long-term BTC trajectory, noting that just the discussions over BSR have created a “buying pressure” in the market. He further stated:
“While I don’t believe the US government will purchase Bitcoin, it doesn’t affect my positive price outlook.”
Meanwhile, despite the optimism, Hayes predicts short-term corrections for BTC during its run toward the $1 million mark. In addition, he also said that a crypto market crash is likely in January around Trump’s inauguration day on January 20. However, despite the gloomy outlook, he said that following the “harrowing dump”, the market will witness a “crack-up-boom phase in the crypto bull market.”
Bitcoin & Altcoins Retreat Sparking Speculations
The recent global shift towards the digital assets space has sparked a robust rally in Bitcoin and other crypto. Notably, EU politicians have also called for a Bitcoin Strategic Reserve recently, following the global buzz after Donald Trump hinted towards a similar move for the US.
Considering all these aspects, the market sentiment appeared to have remained high. However, despite that, the recent dip in the market has fueled speculations. Besides, Arthur Hayes’s warning about a potential crypto market crash ahead has further triggered discussions in the market.
It appears that some investors are booking profits after the recent massive rally, which has weighed on the broader market performance. In addition, the market participants might be taking a pause ahead of the US FOMC later today, which would provide cues on the Fed’s rate cut policy stance and the broader economic health.
How’s The Crypto Market Performing?
The global crypto market cap declined nearly 3% today to $3.64 trillion, with Arthur Hayes’s crypto market crash prediction further weighing on sentiments. Bitcoin price today recorded a dip of 2.5% to $104,140, after touching its ATH of $108,268.45 in the last 24 hours. Despite the recent dip, BTC noted monthly gains of 13%.
On the other hand, the latest Ethereum price showed a decline of 4% to $3,851, a day after the crypto crossed the brief $4K mark. Cardano price retreated 4%, while XRP slipped 1%, despite RLUSD launch optimism and soaring whale activity recently.
Among the top meme coins, Dogecoin price today was down nearly 4% to $0.3845. On the other hand, Shiba Inu price dipped about 5% while Pepe Coin retreated more than 7% in the last 24 hours. However, despite the recent setback noted in the broader digital assets space, it appears that the market experts remained optimistic about the long-term picture of the sector.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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