BitMEX co-founder and CEO, Arthur Hayes, went on CNBC’s Fast Money recently, and said that he suspects the recent Bitcoin upturn could be a short squeeze. He stated further that he does not think the Bitcoin price has hit bottom for the year.
“I don’t think we’ve seen the worst [for Bitcoin this year],” says Hayes. “I think this is a very strong reality on good volume. We could definitely see [Bitcoin’s price go to] $8,000 or $9,000 and maybe just shy of $10,000… I would like to see us test $5,000 to really see if we have put a bottom in.”
BitMEX is a derivatives market that, according to the BitMEX website, offers leveraged contracts that are bought and sold in Bitcoin. During Bitcoin’s recent rise from $6,800 to $7,250 BitMEX reportedly liquidated around $230 million in short positions over the course of 15 minutes.
Hayes, who worked as an equity derivitives trader for Deutsche Bank and Citigroup for 5 years before building BitMEX, thinks that recent Bitcoin rally is similar to what we saw last Spring.
“We’ve been here before in the Spring. We rallied [from $5,000] to around $9,000, but we didn’t quite crack $10,000. I think similar action will happen this time.”
Haye’s thinks that Bitcoin is sure to encounter more volatility which could be both good and bad news for traders. He suspects many of the biggest Bitcoin traders are currently taking a break from crypto while on vacation and that in the coming months we will begin to see significantly more action in the markets.
Impressively, BitMEX’s high trading volume records are being reached without its service’s being available to the U.S. market. The company primarily serves traders in north Asia, capitalizing on the mobile trading and gaming markets which dominate the region. Despite general downturns in the market since the crypto boom last December, BitMEX has continued to expand—with its highest trading volumes recorded as recently as March. Hayes expects to see record breaking volumes to take place in the third and fourth quarter of this year as “everyone comes back from summer vacation.”
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