The cryptocurrency market is in turmoil. Bitcoin just hit its lowest point for 2018 after its price recently fell slightly below $5,000. This resulted in a $20 billion wipeout for the entire cryptocurrency market.
The news is undoubtedly devastating for many, but it doesn’t come as a surprise for some. For Arthur Hayes, the CEO of BitMEX, the news was expected. In fact, he predicted it back in July amidst criticism and skepticism from other analysts.
A Spot-On Prediction
Mr. Hayes made his prediction back when Bitcoin was still valued over $6,000. Expectedly, many people did not share his opinion. However, Mr. Hayes argued that historical trends and future possibilities all pointed towards this downfall. He also cited his 5 years of experience investing in cryptocurrencies as well as his extensive experience as an analyst at Citibank and Deutsche Bank.
In fact, Mr. Hayes was so confident in his analysis that he executed short orders following his remarks. To this end, he is one of the few people who stand to profit from the recent setback.
Lower Lows To Come
Mr. Hayes has even more bad news for Bitcoin holders – the worst is yet to come! According to Mr. Hayes, this is evident in Bitcoin’s historical performances and trend patterns.
The current bearish trend started back in March when the BTC spot fell under the 200-day moving average. It intensified this past week when BTC hit the $5,600 mark on Wednesday and then quickly fell below $5,000 over the past several days.
Earlier in July, Mr. Hayes had told Yahoo Financial News that the bearish market was expected to persist well into 2019. He recently backed his claim up by saying that Bitcoin would eventually fall to lows of $2,000 come 2019. Expectedly, this latest prediction has faced even more criticism and skepticism than his previous one – it would essentially spell doom for most investors. However, Mr. Hayes claims to have done proper research and analysis before reaching his conclusion.
According to previous data, Bitcoin has experience peak-to-through levels as high as 94% the current PTT level stands at 67%. Considering that there are signs that there may be further turmoil in the markets, Mr. Hayes has reason to believe that the current bear trend is far from over. Should it reach 94%, Bitcoin could well fall below the $2,000 mark and once again fulfill Mr. Hayes’ prediction.
Implications For The Market
The recent drop in BTC prices has come with one good outcome – Bitcoin has finally regained its high volatility levels. However, it is also worrying for the cryptocurrency markets at large as Bitcoin’s performance is viewed as a health gauge for the markets. Hopefully, things will look up as analysts are confident of the fundamental and technical fail-safes put in place for a time such as these.
Bitcoin is at its lowest point in 2018 having fallen below $5,000. This is devastating news for most investors, but it is not unexpected for Mr. Hayes and his followers. The current bearish trend is expected to continue with the worst scenario being that Bitcoin will fall to $2,000 as predicted by Mr. Hayes.