Bitcoin Crash to $30K? So says Crypto Exchange Co-Founder

The former CEO of BitMEX, Arthur Hayes, revealed a crushing bitcoin price prediction in a recent blog post about the economy in which he predicted that Bitcoin might crash to $30,000. According to the post,  Ether will test the $2,500 support zone before the end of June.

Hayes’ bitcoin price prediction comes at the heels of swinging crypto prices and worries among enthusiasts about the direction of the premier coin. He believes that the cheap money era is coming to a resounding close and posits that investors will look for safer investments as they remove funds from speculative assets like $BTC.

If Hayes' prediction tastes any form of reality, the entire crypto market will be in for a real bear run with heavy losses for investors. Let's take a closer look at how bitcoin could fair in the not-too-distant future.

Short Term Outlook Is Scary Compared to the Long Term Warns Bitmex Co-Founder

Bitmex co-founder Arthur Hayes, in his recently published blog regarding the state of crypto markets, revealed there could be the inability of key players to recognize an “inconvenient truth.” He reveals that crypto is heading in a mindless lockstep direction with market equities.

Backing up his claim, Hayes predicts a value reduction of roughly 30% to 50% in the Nasdaq 100 (NDX). According to him, cryptocurrency assets like ethereum and bitcoin are expected to crash in value, too, given more stock market butchery. 

While he’s not so clear on the percentage of the drawdown, he is, however, convinced that the Federal Reserve has ended its money easing endeavors. Referring to such changes, he said, 

“Let’s be clear. The Fed isn’t planning to grow its balance sheet again any time soon, meaning equities ain’t going any higher,” Hayes said.

Two things are obvious from his predictions: he sees the crypto economy following the U.S. tech stocks by accruing a significant drawdown in the coming months and an inevitable drop in bitcoin to $30,000 per unit.

Is Crypto Bubble Popping History Repeating Itself?

Bitcoin has been trying to hold the $40,000 mark since it reached its all-time high in November 2021.

As of press time, bitcoin has been up 3.27% in the past 24hours while trading at $41,389. The fact that the world’s largest crypto is down 59.89% from its all-time high might not kindle hope for most investors and analysts.

While drawing similarities between the present stock marketing campaigns and stockbrokers before the Great Depression, a report by Invesco suggested a bitcoin price prediction of less than $30,000.

“The mass marketing of bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash,” said Paul Jackson, Invesco's global head of asset allocation, in a note on Monday. “We think it is not too much of a stretch to imagine bitcoin falling below $30,000 this year,” he concluded.

Last July, the price of bitcoin fell below $30,000, rounding up what was a spell of heavy losses experienced across the global crypto market in months. All of these scenarios are, however, a long way from becoming a reality because the market can be volatile. Last year some analysts predicted bitcoin would fall below $10,000, but it rallied to an ATH of $68,000.