Following the collapse of TerraUSD and the most tumultuous week for Bitcoin trading in at least two years, cryptocurrencies trended lower on Saturday. By noon, Bitcoin, the world’s largest cryptocurrency, had lost almost 2.5 percent of its value.
After recovering in Friday trading, Ether slid back below the $2,000 mark just after midday, re-entering the lower terrain.
Following this week’s Terra (LUNA) crash, the co-founder of the crypto exchange BitMEX forecasts that Bitcoin (BTC) and Ethereum (ETH) will continue to plummet in price.
Arthur Hayes claims he’s gearing ready to accumulate both crypto assets in a recent blog post, predicting a plunge to major cyclical lows. Hayes claims he’ll be buying BTC for $20,000 and ETH for $1,300.
“These levels roughly correspond to the all-time highs of each asset during the 2017/18 bull market.”
According to Hayes, crypto capital markets must evaluate who is overexposed to Terra.Hew says any service with above-average yields that is suspected of being affected by this melodrama will see rapid outflows.
He explains that it will be a sell first, read later exercise, given that most individuals never learn how any of these methods truly work in stressful settings.
This will continue to weigh on all crypto assets as investors lose faith and prefer to suck their thumbs, hug their safety blankets, and keep their fiat dollars.After the bloodletting, the crypto capital markets must be given time to heal, he added
Terra, the decentralized finance payment infrastructure, failed earlier this week and lost all of its value. Despite the fact that his structurally long crypto positions are losing value, Hayes claims he has made no changes to them.
“If anything, I’m evaluating the various altcoins I own and increasing exposure.”
Hayes and fellow BitMEX co-founders Benjamin Delo and Samuel Reed pleaded guilty in March to violating a provision requiring financial institutions to assist the government in detecting and combating money laundering schemes.
The US Department of Justice (DOJ) claimed that the three knowingly violated anti-money laundering regulations and benefitted from US-based customers’ transactions while operating outside of the nation.