Arthur Hayes, the former CEO of cryptocurrency derivatives exchange BitMEX, is warning investors that all crypto assets except Bitcoin (BTC) and Ethereum (ETH) may suffer catastrophic losses.
Hayes states in a recent post that if BTC and ETH fall below $30,000 and $2,000, respectively, in the next months, he would consider selling all of his other crypto assets due to the possibility of massive losses.
“If I feel that Bitcoin will go below $30,000 and Ether will fall below $2,000 in the next three to six months, I will sell all of my sh*tcoins.” This is because Bitcoin and Ether are the highest-quality currency, and they will drop at a slower rate than all their unproven rivals.
Any apps that make use of the Bitcoin or Ether blockchains will also experience gravity speeds exceeding 9.8m/s. These sh*tcoins might fall by 75% to 90% in a truly crypto risk-free environment.”
Hayes also states that if BTC and ETH decline below their recent bull market highs, he will begin to doubt the two main cryptocurrency assets’ worth.
“If Bitcoin trades at or below $20,000, or Ether trades at or below $1,400, I will begin to doubt that these cryptocurrencies can maintain their worth in energy terms.
These two levels were formerly the bull market’s all-time highs. However, that is the fiat price; if oil prices fall more, who cares if the benchmark cryptos sell for less fiat?”
At the time of writing, BTC is trading at $42,014 per coin, down 20.98 percent from its 30-day high of $50,830, while ETH is trading at $3,134, down 35% from its 30-day high of $4,179.
Wallets