BitMEX CEO Doubles Down on Bear Call, Says BTC Could Fall to $2,000
November 2, 2018
Bitcoin News | Crypto News | Latest News
What a difference a few months can make. It seems like a lifetime ago that Arthur Hayes, CEO of cryptocurrency derivatives platform BitMEX, predicted that the bitcoin price could reach $50,000 in 2018. In fact, it has been less than six months, though the events that have occurred during that interlude have been sufficient for Hayes to slash his short-term crypto forecast by more than 95 percent.
Hayes, a former Citigroup trader, is now predicting that the bitcoin downtrend could last another 18 months, mirroring the “nuclear bear market” the crypto industry experienced in 2014 and 2015. Writing in Friday’s edition of the BitMEX Crypto Trader Digest, Hayes doubled down on that portentous outlook.
While chart-watchers often treat bear markets as beginning as soon as an asset dips below its cyclical peak, Hayes said that a better strategy may be to mark the beginning of the bear market as the date at which the bitcoin price falls below its 200-day moving average (DMA). By this metric, bitcoin entered bearish territory on March 12 when it was priced at $9,152 and has only seen a 37 percent decline since dropping below the 200 DMA.
FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.
CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.
Given that past bear markets have seen bitcoin break much further below its 200 DMA, he argued that it’s likely we still have a long way to go before the bears finish twisting the knife, potentially dropping BTC as low as $2,000 before the bulls regain their footing.
“How low can we go?” he asked. “A 75% fall from $9,152 takes us close to $2,000. $2,000 to $3,000 is my new sweet spot but don’t tell Michelle Lee just yet.” [Note: Hayes is likely referring to CNBC host Melissa Lee]
Hayes also cited the decline in bitcoin volatility as justification for his bearish outlook, taking a different tack from Fundstrat founder Tom Lee, who said that he was “pleasantly surprised” to see the decline in volatility given conditions in the broader equities markets.
“Contrary to popular belief, Bitcoin requires volatility if it is ever to gain mainstream adoption. The price of Bitcoin is the best and most transparent way to communicate the health of the ecosystem. It advertises to the world that something is happening–whether that is positive or negative is irrelevant.”
“The Bitcoin price volatility is the gateway drug into the ecosystem,” he continued. “If volatility stays at these depressed levels, the price will slowly leak lower. For those of us who lived through the 2014-2015 bear market, we all await that nasty ass candle that breaks the soul of the bulls. Then, and only then, will volatility and the price ratchet higher.”
In the meantime, Hayes said that the best traders could do is attempt to call the bottom, though they probably won’t have the fortitude to act when their instincts tell them that the floor is in.
“The key consideration to ‘calling the bottom’ is the price action around the last gasp of the bears. You will know it when you see it,” he concluded. “And the best part is, you probably will be too chicken to click that oh so scary Buy button.”
This week, Bitcoin mining equipment manufacturer and blockchain software firm Bitfury secured a valuation of $1 billion from billionaire investor Mike Novogratz and Korelya Capital’s $80 million investment in the firm. The multi-million dollar funding round comes
Bitcoin on Wednesday challenged new highs as price against the US Dollar surged 1.42 percent within a few hours. CHART FROM TUESDAY NOVEMBER 7, 2018 | SOURCE: TRADINGVIEW.COM The BTC/USD pair built upon the near-term
Balaji Srinivasan, a prominent venture capital investor and the chief technical officer at Coinbase, said that crypto is entering the tech mainstream. “Sundar Pichai & Sergey Brin’s sons are both mining crypto; Facebook is doing blockchain; Square
It’s not Thursday, but this story sure feels like a throwback to headlines from last year’s cryptocurrency mania: crypto enthusiasts have begun using their tokens to take out real mortgages on virtual land. Decentraland &
Ripple (XRP) on Tuesday established a bullish setup after rising more than 10 percent against the US dollar. The pair broke above the October peak to set a new one-month high at 0.569-fiat. It was previously
Bitcoin has been unusually stable in recent weeks, and the decrease in volatility has now reached historic levels in the futures markets. Bitcoin Volatility Hits Record Level in Futures Markets That’s according to Kevin Davitt,
Andreas M. Antonopoulos, the author of “Mastering Bitcoin” and a self-proclaimed “computer geek” who has dedicated his career to bitcoin, has a bone to pick with Bitly, the web-link shortening service. Bitly has seemingly blacklisted cryptocurrency
LXDX, the high-speed cryptocurrency exchange founded by a former SpaceX engineer, has announced that it will issue stock through a security token offering (STO). Institutional Crypto Exchange to Issue Stock on the Blockchain LXDX, which
IBM has filed a patent for a blockchain-based system which will prevent players of augmented reality games entering physical spaces that are undesirable. They cite as examples “high-risk locations, culturally sensitive locations, locations marked by property owners.”
Recent times have seen banks hedging their bets or even fully integrating cryptocurrencies. The acquisition and filing of patents is how large organizations truly express their interest in a given field, and Bank of America continues
Bitcoin (BTC) turned ten on Oct. 31, but there were no fireworks to mark the celebrations: the cryptocurrencies continue to trade in a tight range. Arthur Hayes, CEO of BitMEX, believes that the current period of low volatility can
Coinbase has just announced that trading of the Basic Attention Token is soon to be enabled on the Coinbase Pro platform, and deposits of the token are now being accepted. Trading in the token — which runs on Ethereum
What a difference a few months can make. It seems like a lifetime ago that Arthur Hayes, CEO of cryptocurrency derivatives platform BitMEX, predicted that the bitcoin price could reach $50,000 in 2018. In fact, it has
There is a rapidly growing interest in bitcoin and other cryptocurrencies among institutional investors while there seems to be lethargy in the number of retail buyers operating within the space. As such, bitcoin and altcoins now constitute a new
Retired US Congressman Ron Paul, a one-time bitcoin skeptic, called for a tax exemption on all cryptocurrencies, saying the move could prevent an economic recession. Ron Paul, the father of current United States Senator Rand Paul,
Tether Limited, the issuer of controversial USD-pegged cryptocurrency stablecoin tether (USDT), has confirmed that it has established a banking relationship with a small financial institution based out of the Bahamas. The cryptocurrency firm, notorious for its opaque operations,
Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews