Arthur Hayes, former CEO of crypto derivatives platform BitMEX, believes the worst for Bitcoin (BTC) could have ended this cycle.
In an interview with crypto advocate and podcaster Scott Melker on Dec. 11, he stated, “Sooner or later, nearly everybody who can go bankrupt is bankrupt.”
Hayes says that when centralized lending firms (CELs) are in monetary hassle, they usually name loans first, then promote BTC first. Most fluid. ”
“When you have a look at the steadiness sheets of any of those heroes, there is no such thing as a bitcoin as a result of what are they doing, they offered bitcoin once they went bankrupt.Through the wave earlier than chapter I offered bitcoin to
Hayes made related allegations in a Dec. 10 weblog submit, stating that whereas this “credit score disaster is underway,” each CEL, which is making an attempt to keep away from chapter, and the buying and selling firm that collected the mortgage, have given the change clarify that there’s a giant bodily sale of BTC on , and the place must be liquidated.
Let’s do that once more.
In “PEMDAS” I insist that $BTC After hitting backside, what sort of #CryptI’ll maintain whereas ready for the cash printer to brrr once more.https://t.co/JNAQ7VK0Ec pic.twitter.com/IV4Td1UTda
— Arthur Hayes (@CryptoHayes) December 9, 2022
“That is why the worth of Bitcoin crashes earlier than CEL goes bankrupt. It’s an enormous transfer,” he stated.
“Whereas we can not show that every one the bitcoins held by these failed monetary establishments have been offered through the a number of crashes, essentially the most liquid cryptocurrency collateral doable simply previous to chapter was It appears to be like as in the event that they did their finest to liquidate the
Hayes believes the large-scale liquidation is over, explaining in a weblog submit, “There isn’t any cause so that you can maintain out if there may be an pressing want for fiat forex.”
Associated: Hong Kong could possibly be key to China’s crypto revival — Arthur Hayes
Whereas the market continues to be within the midst of crypto winter following the collapse of crypto change FTX and its ensuing results, Hayes believes the market may see some restoration in 2023.
“I imagine the U.S. Treasury market will crumble sooner or later in 2023 as a result of Fed’s tightening coverage,” he stated. We anticipate a increase shaka after that. laka — Bitcoin and all different threat property will surge.”
