Bitcoin Value Crashes Towards $53K However Arthur Hayes Expects It To Plummet Additional

Bitcoin’s worth collapsed on Friday under $53,000, reaching its lowest stage for the reason that “Black Monday” following macroeconomic shakeups in early August.

The collapse seems to have absolutely corroborated the prediction of BitMEX co-founder Arthur Hayes, who believes there may nonetheless be extra ache to return for crypto holders.

• Bitcoin traded for $56,925 at 1:25 PM UTC, earlier than collapsing to $52,871 by 8:55 PM UTC. It trades for $53,500 at writing time.
• On Thursday, Hayes predicted that Bitcoin may plummet even additional over the subsequent two days.
  “BTC is heavy, I’m gunning for sub $50k this weekend,” he tweeted. “I took a cheeky quick. Pray for my soul, for I’m a degen.”
• In early August, Bitcoin briefly dipped under $50,000 after the Financial institution of Japan raised rates of interest for the primary time in over a decade. Nevertheless, Bitcoin and the broader market shortly recovered because the BOJ promised to not increase charges additional as long as it threatened market stability.
• But Bitcoin and shares are again on the decline as poor U.S. financial information this week continues to level in direction of a coming recession.
• On Tuesday, Hayes already warned that Bitcoin may “slowly leak towards $50,000,” blaming rising deposits to the Fed’s Reverse Repo Program (RRP) for sucking cash out of the broader market.
• In his essay, he emphasised that his bearishness is “non permanent,” and can probably solely final till the tip of the month earlier than the Federal Reserve and U.S. Treasury inject the economic system with extra liquidity.
• “I anticipate intervention to start in late September,” he mentioned. “Between at times, Bitcoin will, at greatest, proceed to cut, and altcoins may dive deeper into the gutter.”