The former CEO of crypto derivatives platform BitMEX believes that the crypto market could partially recover in 2023 as the “most irresponsible organizations” have already gone bankrupt.
Arthur Hayes stated that the collapse of the FTX cryptocurrency exchange and the subsequent aftershock of the cryptocurrency market led to the ruin of the largest cryptocurrency companies. While the industry is “still in the grip of crypto winter,” Hayes sees all the prerequisites for a recovery in 2023.
The businessman argues his assumption by the fact that in the event of financial problems, each of the future bankrupt companies actively sold crypto assets to maintain liquidity. As a target, Hayes uses the value of bitcoin as the “primary reserve asset” of troubled organizations, which is declining as a result of the mass sale. The stabilization of the BTC price and its growth, according to the former head of BitMEX, show the end of the crisis period phase and a reversal of market sentiment.
“I can’t demonstrably prove that all the bitcoins held in failed institutions were sold during multiple crashes, but it seems that companies struggled to realize the most liquid crypto-currency collateral right before going broke,” Arthur Hayes explained his thought.
If we rely on the patterns identified by Arthur Hayes based on the dynamics of the BTC exchange rate, then the cryptocurrency market may continue to fall. According to well-known cryptocurrency skeptic Peter Schiff, in the near future the price of bitcoin may decrease several times.
Source: Bits
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