The crypto market’s collapse is bringing down top digital assets along with it. While many crypto investors are counting their losses and deciding the next step to take, some experts are becoming more critical about the future of the market.
BitMex founder, Arthur Hayes, is known to be very outspoken about the cryptocurrency market activities via his Medium post. However, his latest post seems more pessimistic compared to the a while ago when he predicted the bottom figure for Bitcoin and Ethereum.
Hayes believed that the market will continue to face terrible pressure for the next six to twelve months. This news comes as no surprise because the winter market has already begun and prices are declining drastically.
Sh.t Crypto Coins To Lose Another 50% Due to Fed’s Interest Rate Hike
The BitMex founder also had things to say concerning specific tokens that he sees as lacking real value or utility. These coins are also known as “sh.tcoins.” While some altcoins have good value, sh.tcoins only work with the hype which does not last. Hence, Hayes stated that such coins are going down the drain.
In his view, while many of these useless coins have already lost over 90%, they are set to lose a further 50% within the next 6-12 months as crypto winter gets harsher.
He attributes a huge part of this cause to the Fed’s move to hike interest rates. The Feds have announced a rate increase of 75 basis points (or 0.75%) that will have gone into effect by June 30. The following 5-6 days after that will see cryptos, especially these sh.tcoins, drop by significant margins.
“June 30 to July 5 is going to be a wild ride to the downside. By June 30, the Fed will have enacted a 75bps rate hike and begun shrinking its balance sheet. July 4 falls on a Monday and is a federal and banking holiday. This is the perfect setup for yet another mega crypto dump.”
Crypto Predictions Gone Wrong
Arthur opened up that his initial analysis of BTC and ETH was wrong. He recently predicted that Bitcoin would bottom out at around $25k while ETH would at about $1,500.
“My $25,000 to $27,000 Bitcoin and $1,700 to $1,800 Ether bottom levels lay in tatters.”
A quick look at the current prices puts his predictions on the wrong side of the market. Currently, BTC is valued at around $21,061, while ETH is going for $1,094. Analysts believe these prices could fall further if the $20k support is breached.