Bitmex co-founder Arthur Hayes predicts a sharp decline in the Crypto market, predicting that Bitcoin could drop to $100,000 and Ethereum could fall to $3,000.
His warning follows a combination of macroeconomic pressures and weak creation of credit across the world economy.
Crypto market hit by a $372 million loss following Hayes’ warning
In an August 2nd post on X (formerly Twitter), Hayes attributed his forecast to a US tariff bill expected in the third quarter. He also pointed out broader economic challenges as contributing factors.
Furthermore, Bitmex co-founders pointed out that there is no major economy expanding credits quickly enough to increase nominal GDP. According to him, this could lead to a revision to the cryptocurrency market.
Hayes’ bearish stance appears to coincide with broader market sentiment. The market capitalization of total cryptocurrency has dropped by more than 3% in the past 24 hours, currently at $3.76 trillion.
Bitcoin has experienced significant volatility in the last 24 hours, immersed its weekly lows from nearly $114,000 to $112,113, according to Beincrypto data. However, it recovered slightly at press time to $113,494.
Ethereum followed a similar trend, regaining some ground from over $3,500 to over $3,373.
This sharp market slump has led to a liquidation of nearly $372 million over the past 24 hours, affecting more than 115,000 traders.
Long traders bet on market rebounds to control the liquidation volume, accounting for a loss of around $322 million.
Meanwhile, short traders who were hoping for a further price decline saw only $65 million in liquidation.
Beyond assets, Ethereum led the liquidation sweep, with about $119 million liquidated, followed by $62 million in Bitcoin.
Despite the pullback, Eric Trump, the son of US President Donald Trump, has encouraged Bitcoin and Ethereum investors to take advantage of the low prices. He suggested that now is a good time to buy dip.
In particular, his previous advice to buy Bitcoin during price adjustments saw assets rise 15%, while Ethereum rose 20%.
Investors now hope that Trump’s current appeal will similarly reflect past positive market outcomes.
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