The co-founder of the crypto exchange platform BitMEX predicts Bitcoin (BTC) and Ethereum (ETH) will continue to fall in price in the wake of this week’s Terra (LUNA) collapse.
In a new blog post, Arthur Hayes says he’s gearing up to accumulate both crypto assets as he anticipates a drop to major cyclical lows.
According to Hayes, he’ll be a buyer of BTC at $20,000 and ETH at $1,300.
“These levels roughly correspond to the all-time highs of each asset during the 2017/18 bull market.”
Bitcoin is trading at $29,878 at time of writing. Ethereum is trading at $2,049.
Hayes says crypto capital markets need to determine who is overexposed to anything related to Terra.
“Any service offering above-average yields that is believed to have any exposure to this melodrama will experience swift outflows.
And given that most people never read how any of these protocols actually work in distress scenarios, it will be a sell first, read later exercise. This will continue to weigh on all crypto assets as all investors lose confidence and would rather suck their thumb, clutch their safety blanket and hold fiat cash.
The crypto capital markets must be allowed time to heal after the bloodletting concludes.”
Terra, the decentralized finance payment ecosystem, has collapsed and lost all of its value earlier this week.
Hayes, however, says he’s made no alterations to his structurally long crypto positions even though they’re losing value.
“If anything, I’m evaluating the various altcoins I own and increasing exposure.”
In March, Hayes and fellow BitMEX co-founders Benjamin Delo and Samuel Reed pled guilty to breaking a law that requires financial institutions to help the government detect and counter money laundering schemes.
The U.S. Department of Justice (DOJ) alleged that the trio willfully failed to maintain anti-money laundering protocols and profited from the transactions of US-based customers while operating outside of the country.
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