Arthur Hayes, the former chief executive of BitMEX, a leading cryptocurrency derivatives exchange, is issuing a warning to investors, saying that the entire cryptocurrency market except BTC and ETH could see devastating losses.
So, in a new article, Hayes says that if BTC and ETH both fall below $30,000 and $2,000 respectively in the next few months, he would consider selling all other cryptocurrencies as they could plummet and take staggering losses. .
Therefore, according to him, not even metaverse tokens that are booming like SAND, MANA, CACA or ETH competitors like BNB, SOL, AVAX will survive a sudden drop in the price of BTC.
“If I believe that BTC could trade below $30,000 and Ether below $2,000 in a time horizon of three to six months, I will discard all my sh*tcoins. This is because BTC and Ether are the highest quality coins and will decline less than all of their as-yet-unproven competitors,” he said.
So, according to him, any specific applications that use the BTC or ETH blockchain will also experience a drop of 75% to 90% in a true bearish environment throughout the market and in the style of ‘save what you can’ as he points out.
Therefore, Hayes also says that if BTC and ETH both fall below their previous market highs, he would also begin to question the value of the two biggest cryptocurrencies.
“If BTC trades at $20,000 or below, or Ether at $1,400 or below, then I will start to wonder if these cryptocurrencies can preserve their value in terms of energy. These two levels were the highest previous highs during the 2017 bull market. But that’s the fiat price. If oil turns negative again, who cares if benchmark cryptocurrencies chase fewer fiat units? “, ends.