The terrifying warning from the CEO of BitMEX: "The price of Bitcoin could return to $ 3,000"
BitMEX CEO Arthur Hayes and trader Crypto Capo believe Bitcoin's price could drop as low as $ 3,000 if the stock markets correct again.
BitMEX CEO Arthur Hayes and a trader known as 'Crypto Capo' predicted that the price of Bitcoin (BTC) would drop to $ 3,000 in early 2020. In the short term, they both expect Bitcoin to retest the region of the $ 3,000 once again.
In BitMEXcon's Crypto Trader Digest of April 9, 2020, Hayes said that as the US stock market, sees another leg down, all asset classes could 'vomit', causing Bitcoin's price to correct.
Before the March 12 drop to $ 3,600, "Crypto Capo" forecast a drop to $ 3,000. This week Crypto Capo again forecast that the price of Bitcoin is likely to fall to the range of $ 2,100 to $ 3,000.
Hayes believes stocks will plummet and Bitcoin will follow.
In the short term, Hayes seems to anticipate that the US stock market It will back down after an apparent strong rebound that started in late March.
The recent $ 2 trillion Senate stimulus package organized by the Federal Reserve is intended to prevent another market crash in 2008, and it appears that this has fueled an appetite for equities in recent weeks.
Historical data suggests, however, that amid economic turmoil, the US stock market tends to see several important false spikes.
Since there is limited progress in containing the coronavirus pandemic in the United States and Europe, global manufacturing has stopped, and major European economies appear to be in free fall, high-risk assets like stocks and Bitcoin are vulnerable to a large correction.
Hayes explained:
"Bitcoin will be unlevered property. Could the price retest $ 3,000? Absolutely. As the SPX turns around and tests 2,000 they expect all asset classes to vomit again. As violent as the first quarter collapse in asset value was, we have nearly 100 years of imbalances to undo the old regime. "
On March 12, the price of Bitcoin plummeted to $ 3,600, primarily on futures exchanges, including BitMEX, OKEx, and Binance Futures, while spot markets held above $ 4,000.
Whether BTC will retest the recent low of $ 3,600 or consolidate in the support range of $ 4,500 to $ 4,800 remains to be seen, but another extreme sale could be triggered by the US stock market. which is reaching a lower minimum.