Bitcoin Corrections Not Over Yet, Arthur Hayes Sees More Losses Incoming
After a record-breaking string of declines, the former BitMEX CEO – Arthur Hayes – has given yet another dire outlook on where crypto is headed. In the latest Twitter thread, Hayes said that the respite might be brief, and forced selling in the short-term may drag the entire market down.
The former exec predicted the possibility of an intense selling of crypto in the near term after observing the liquidation of 24,500 BTC of Canada’s Purpose Bitcoin ETF on Friday, representing nearly half of its total holdings.
BTCC – Purpose ETF puked 24,500 $BTC into the North American Friday close. I’m not sure how they execute redemptions but that’s a lot of physical BTC to sell in a small time frame. pic.twitter.com/BY7foKdPjY
— Arthur Hayes (@CryptoHayes) June 19, 2022
Hayes suspected the subsequent sell-off might have been caused by a forced seller triggering a big cluster of stop-loss orders.
Taking a jibe at the crypto-lending platforms and pointing out their “poor risk-management” strategies as well as “generous lending terms,” the ex-CEO of BitMEX said he expects more pockets of forced selling of Bitcoin (BTC) and Ethereum (ETH).
Quoting the famed stock-picker and Berkshire Hathway CEO, Warren Buffet, Hayes also asserted that the crypto market is figuring out who is “swimming naked.”
The rapid declines have unmasked the vulnerabilities of many prominent companies on the frontline of crypto.
Hayes could be referring to another shake-out that would potentially expose many risks in the coming days.
His comments come at a time when DeFi, as well as the collective crypto sector, face the brunt of the liquidation rumors of Three Arrow Capital (3AC) and Celsius.
“Is it over yet … idk. But for those skilled knife catchers, there may yet be additional opportunities to buy the coin from those who must whack every bid no matter the price.”
Last week, Hayes argued that Bitcoin is forming a base at $20k while Ethereum is attempting to limit its losses to $1k and warned that a breach of the levels in question could result in a damaging turn of events for the duo.
Subsequently, the prices did falter, but even as the market turned mild green, the overall sentiment remains bearish. Concerns about the distress magnifying have hit the investors hard as they try to recoup some of their losses.