The coronavirus has had a terrible effect on the world’s stock markets. The Dow Jones Industrial Average (DIJA) and the S&P 500 have all lost considerable weight as the outbreak continues to worsen. The crypto sector has also not been spared as publicly-listed crypto businesses are also experiencing serious loss. The market’s top assets are also crashing.
With all of the disappointing stories, the CEO of the derivatives platform BitMEX has some bad and good news. According to Arthur Hayes, Bitcoin could suffer further losses from the market plunge taking place everywhere.
In the recently released BitMEX Crypto Trader Digest, Hayes says that Bitcoin could possibly hit levels around $6,000 because “you gotta go down to go up.” He adds:
“Bitcoin will not escape. While I don’t believe we will revisit $3,000, max pain probably resides somewhere between $6,000 to $7,000”
In the last 24 hours, Bitcoin has lost almost 25% already. Currently trading at $5,889.98, its trajectory in the last few days has been less than encouraging. Hayes might be up to something, believing $3,000 will not happen. However, “max pain” is possibly a lot lower than $6,000.
In the publication, the CEO added that panic dumping will increase. Hayes says that hedge funds will start to receive a lot of distress calls from scared customers. The panic and the dumping will drive prices lower.
Regardless, he mentions that even with the turmoil, Bitcoin has still outperformed “most global equity indices in 2020.” Hayes is confident that the crash will be short term and prices will climb. He believes that after the initial panic, Bitcoin will climb back to $10,000. By the end of the year, Hayes believes Bitcoin will see its current all-time high of $20,000.
He further adds that the signal of an “evaporation of optimism” is when futures are flattened out or fall into the negative. Hayes advises that when this happens, people must begin to hodl, beginning with Bitcoin. According to him “other dog shit” like XRP could also surge.