The End of the Line for Selling Pressure?
Arthur Hayes, formerly at the helm of BitMEX, is feeling optimistic about Bitcoin’s future. In a recent chat with podcaster Scott Melker, he hinted that the toughest days for Bitcoin (BTC) might be behind us. With the “largest most irresponsible entities” reportedly having exhausted their BTC selling sprees, could the tides be turning for crypto investors?
Bankruptcy: The Irony of a ‘Reserve Asset’
In a rather ironic twist, when centralized lending firms (CELs) face financial strife, they often scramble to convert assets back into cash. Hayes revealed, “they sell the Bitcoin first because it operates as the reserve asset of crypto.” Who knew that being the ‘favorite child’ could get you in so much trouble!
Liquidation: The Last Resort
According to Hayes, the pattern of CELs liquidating their BTC when times got tough has been painfully clear. They had to call in loans and liquidate positions in a ~desperate attempt~ to stay afloat. It’s like selling your favorite concert tickets just so you can afford rent. As he quipped, when everything was shaky, “there’s no Bitcoin on the balance sheet” because they were liquidating left and right.
Market Reboot: What Lies Ahead?
The aftermath of the FTX fiasco and other market disturbances seems to have left the crypto sphere shivering in perpetual winter. But let’s not forget the kind of thunderous resurgence these markets can experience. Hayes foresees a potential recovery for Bitcoin and other risk assets in 2023 when the U.S. Treasury market dances its last jig before dysfunction strikes due to the Fed’s tightening policies. His thoughts? “Once the printer goes brrr,” he’s expecting the market to soar.
Keeping an Eye on the Future
As much as we all love a good rollercoaster ride in the crypto markets, Hayes suggests it’s time to pencil in some recovery strategies. After all, patience in this unpredictable space might just be the calling card of the savvy investors. So, what’s the takeaway? While Bitcoin’s journey may look tumultuous, don’t count it out just yet!
+ There are no comments
Add yours