The crypto market has been unstable this yr and after the March rally, it appears to be beneath stress as soon as once more. The broader crypto market cap has slipped beneath $2 trillion and BitMEX CEO Arthur Hayes believes that the worst is but to come back.
In his newest opinion piece, ‘The Q-Lure’ Hayes speaks intimately concerning the altering world macro-economic developments. He additional explains the weak point within the Nasdaq 100 (NDX) index and the way Bitcoin and the crypto market have been carefully associated to it. Sharing the technical chart for Nasdaq 100, Hayes writes:
On 27 December 2022, the Nasdaq 100 closed at a excessive of 16567.50 after which subsequently hit an area low of 13046.64. Utilizing the tried and examined Fibonacci Retracement, NDX failed to interrupt via the 61.8% retracement on the bounce. Just a few days later it tried to interrupt that resistance stage once more, failed, and has continued decrease ever since.
He additional expects Nasdaq to interrupt under its native low and slip to 10,000 and under it. Alternatively, he notes that because the Fed and different central banks should take care of the inflation monster, they received’t be shifting again from quantitative tightening anytime quickly.
Crypto Crash 2022 Coming
Hayes predicts that there can be a robust ripple impact of the Nasdaq 100 correction over to the crypto market. “Bitcoin and Ether are extremely correlated to the Nasdaq 100. If the NDX tanks, it should take crypto down with it. I’m shopping for crash June 2022 places on each Bitcoin and Ether,” he mentioned.
Hayes additionally believes that Bitcoin and Ether will backside earlier than the Fed acts and reverses its coverage from tight to unfastened. He provides that by the top of the second quarter this June 2022, Bitcoin (BTC) will hit $30,000 and Ether (ETH) can contact a backside of $2,500.
Nonetheless, Hayes provides that there are a variety of altcoins he has began accumulating whereby he finds the valuations enticing.
Hayes provides that that is simply his “prognosis” and he reserves the best to be unsuitable. In a concluding be aware, Hayes provides:
“This evaluation is only an try and commerce a short-term state of affairs that I consider will transpire in danger markets and hedge purchases of attractively priced altcoins”