BitMEX CEO: Ethereum Price Will Fall Below $100

Ethereum Price

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When Arthur Hayes has a viewpoint, he does not have the tendency to mince words.

The BitMEX CEO and kept in mind pot-stirrer remained real to form on Tuesday when utilizing a couple of, err, vibrant illustrations, he forecasted that the ethereum price is on track to plunge to double-digit price levels.

Writing in BitMEX’s “Crypto Trader Digest,” the exchange operator’s semi-regular newsletter, Hayes argued that ethereum is a “sh*tcoin” whose price has actually been strengthened by initial coin offerings (ICOs) considering that a minimum of early2017 Increasingly, those financial investments have actually originated from VCs, who he states will ultimately capitulate to the bearishness and dispose their ether and ERC-20 tokens at whatever price they can get.

He composed:

“The VC investor who has never suffered the vagaries of the market is as green as the noob who thinks he or she can go from 1 to 100 Bitcoin in a few trading days. They don’t have the mental strength to cut positions to limit further losses, or backup the truck and buy opportune dips even though they are down. More importantly, LPs can now see an objective last price for a particular token, and can’t be hoodwinked. They will attempt to be a Monday morning quarterback, and that only adds to the VC investors’ anxiety. At a certain point, they go ‘fuck it’, and dump everything they can.”

As reported, ethereum has actually headlined been a headliner in this week’s altcoin bloodbath. The second-largest cryptocurrency, as soon as thought about a lock to supplant bitcoin as the most important cryptocurrency, traded as low as $249 on Monday and is still down 22 percent over the previous 7 days, after recuperating to about $280 on Tuesday.

ethereum price chart
ETH/USD|Bitfinex

Some experts have actually hypothesized that the sell-off is the outcome of ICO-funded start-ups squandering their ether, fearing that the bearishness is going to extend even more than lots of people had actually at first anticipated. However, Hayes argues that it will be VCs who deal the genuine death-blow considering that fund supervisors have the tendency to run inning accordance with a herd mindset.

“The herd of token VC punters will all decide to sell at the same time. If you don’t sell, and the market continues falling, you lose your job. So everyone sells simultaneously but who can eat all that shit? Retail cannot because the deals would never have gotten so large without institutional money. So we gap lower, first on tokens, then on the mothership Ether.”

“I don’t know what that tipping point will be, but in hindsight, it will be obvious when the capitulation occurs. There are those who believe that a sustainable token economy can exist. But they won’t be buying at these levels. Sub-$100 takes us back to Spring 2017 levels. At those depressed prices, the carrion is ripe for ingestion.”

“It is this moment,” he concluded, “that Ether goes from a 3-digit to a 2-digit shitcoin.”

FeaturedImage from Shutterstock

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