Bitcoin: BitMEX Co-Founder Predicts Dive Below $40K
In a recent statement, Arthur Hayes, co-founder of BitMEX, expressed a cautious outlook on Bitcoin's future price movements.
On January 22, Hayes shared his concerns, stating that Bitcoin (BTC) appears to be under significant downward pressure, and he anticipates a potential drop below $40,000. Notably, this shift in sentiment follows Hayes’ earlier bearish predictions for Ethereum (ETH) at $5,000 and Solana (SOL) at $200.
Hayes elaborated on his apprehension, mentioning that he has taken a short position, indicating his expectation of a further decline in BTC’s value. He linked this potential downturn to the upcoming US Treasury quarterly refunding announcement scheduled for January 31. Moreover, Hayes suggested that remarks from US Treasury Secretary Janet Yellen could contribute to pushing BTC prices lower, although there is anticipation within the community for a potential shift in market momentum.
Highlighting recent market dynamics, Hayes pointed out a correlation between the movements of the S&P 500 (SPX) and BTC, noting a divergence post the introduction of the US BTC ETF. He suggested that liquidity challenges in the markets persist as traders await crucial macroeconomic announcements.
READ MORE: Bitcoin Holds Steady Despite Recent Dip
Recent Coinglass data reveals significant liquidations, with a total of $140 million liquidated in the past 24 hours. Over 63,000 traders faced liquidation, with the largest single order on OKX’s ETH-USD-SWAP amounting to $3.20 million. Following Hayes’ statement, nearly $40 million in liquidations occurred on the X exchange.
Subsequent to Hayes’ warning, BTC experienced a decline and is currently trading at $39,109. The 24-hour trading volume deacreased by 3%.
Looking at the broader economic landscape, Hayes attributed selling pressure on Bitcoin to the strength of the US dollar and the increasing yields on US 10-year treasury bonds. The US dollar index (DXY) reversed its early January decline, rising from 101 to 103.50.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
