Everyone was shocked by the recent crypto market crash, particularly Bitcoin. Many coins experienced a dramatic drop in value, and it happened very quickly. The number-one crypto Bitcoin suffered a huge loss as panicked investors sold out. Although many people are hopeful for a rebound, there is no denying that the market storm continues to grow. Investors find it difficult to believe that there are not many reliable sources of information.
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With all the chaos, it’s no surprise that the co-founder of BitMex predicts both Bitcoin and Ethereum bottom levels. Hayes predicts that Bitcoin will fall to $25,000-$27000 while Ethereum will stay at $1700-1800. This is far from the trading prices of both cryptos a month ago.
Hayes explained his reasoning for the prediction by pointing out Terra’s recent sale of 80,000 BTC has put an end to the rush to buy Bitcoin.
BTC has been lagging in the recovery of stocks, which is also a reason for this bottom. Wall Street witnessed some encouraging signs last week but Bitcoin fell to $29,000+ in the period May 29-30. On May 31 and June 1, the price went up to $31,000 but it’s now fluctuating between $29k – $30k At press time.
When the Federal Reserve increased taxes, the crypto market began to slide. Although some investors weren’t sure if they should sell or not, many market participants fell apart as soon as the tax was implemented.
Many investors were forced to sell panic stocks and lost their money. Bitcoin for instance fell below the $40K mark and has fallen at least 9.40% in that time. Not only did the crypto market fall, but so too has the overall global cryptocurrency market.
Are There any chances of Bitcoin and Ethereum recovery?
Hayes states that it is impossible to predict the future. Inflation was combated by an increase in Federal Reserve rates. These conditions remain, but the rate is still high. So the market isn’t ready to change.
Short-term crypto investors were another reason the trend went berserk. This group doesn’t believe in waiting it out until profitability returns.
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They’re more willing to sell at a lower loss than hold their assets uncertainly for the future rally. Hayes still believes that a recovery will come sooner than expected. Many sellers will need to sell their position and take some of the value.
Hayes speculated that it could happen when the short-term investors sell off their holdings. So, he advised that all investors remain patient and still hope that Ethereum might still hit the $10,000 predictions by the year’s end.
Featured image taken from Pixabay. Chart from TradingView.com