Cryptocurrency
Here’s When Bitcoin Will Correct 20-30% Due to ‘Vicious Washout,’ According to Arthur Hayes
Bitcoin bounced back from the flash crash earlier this week after reports on the potential rejection of a widely anticipated spot ETF approval in the US. While investors have maintained a positive outlook, BitMEX founder Arthur Hayes has offered a cautious perspective on the future of the asset.
In fact, the prominent commentator is gearing up for a “vicious washout of all the crypto tourists” in March of this year, with a potential correction in the range of 20% to 30%.
Hayes Predicts 20-30% Correction for Bitcoin
In the latest blog post, Hayes suggested that the correction might be even more pronounced if the anticipated launch of US-listed spot Bitcoin ETFs materializes, speculating that the influx of fiat into these products could drive BTC prices above $60,000, approaching the 2021 all-time high of $70,000.
He further went on to emphasize the possibility of a more substantial 30% to 40% correction, attributing it to a potential “dollar liquidity rug pull.”
Hayes revealed his decision to refrain from buying Bitcoin until after the March decision dates have passed. Demonstrating his trading strategy, the former BitMEX CEO outlined plans to top-tick the market in late February and purchase sizable put options with a June 28th expiry, strategically avoiding the March 29th expiry due to concerns about negative theta overwhelming other factors.
“The longer expiry will be more expensive, but the premium won’t decay as fast because maturity is over a quarter out. I’ll set my maximum loss, which will be sizable relative to my standard trading position, and then purchase the puts.
To get some juicy gearing on these puts, I will choose a strike 20% to 25% out of the money based on the current at-the-money quarterly June futures contract price.”
Bull Market to Continue After March
According to Hayes, the current crypto bull market is in its early stages, and advised investors not to get carried away with their enthusiasm.
By the end of March, he expects the market to regain its footing. Meanwhile, Hayes believes US Secretary of the Treasury Janet Yellen and Federal Reserve Chair Jerome Powell would continue to take measures to protect the fiat solvency of the Pax Americana financial system.
Despite anticipating a brief period of market turmoil, the exec remained optimistic about the market’s upward trajectory, particularly with the upcoming Bitcoin block reward halving. He also announced his plans to resume selling T-bills for Bitcoin and other crypto assets as the market speculation intensifies.
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Cryptocurrency
Bitcoin Maintains $63K, Dogecoin’s Rise Continues With Another 6% Surge (Weekend Watch)
Bitcoin’s price recovery tour took it to a multi-day peak of $64,500 yesterday, but the asset failed to continue upward and has retraced by over a grand since then.
Most larger-cal alts are slightly in the red on a daily scale, with TON, ADA, and SHIB declining by 2-4%.
BTC Stopped at $64.5K
The start of May was quite painful for the bitcoin bulls as the cryptocurrency slumped hard after failing to pump above $65,000 a day earlier. The massive correction drove the asset to its lowest price tag in over two months of $56,500.
The Fed’s refusal to raise the interest rates any further brought more volatility, as BTC pumped and dumped by $2,000 in minutes on Wednesday afternoon. Only then started the gradual price recovery as bitcoin jumped to $59,000 by Friday.
The bulls initiated another leg up then that drove the asset to and beyond $62,000. This increase culminated yesterday with an increase to a multi-day high of $64,500.
However, bitcoin failed to overcome that level and has retraced by more than $1,000 since then. Still, it trades above $63,000 and its dominance over the alts has neared 51%. In contrast, its market cap has declined to $1.244 trillion on CG.
DOGE Keeps Rising
The largest meme coin – Dogecoin – was among the top performers yesterday and it has only doubled down on its run. DOGE has jumped by another 6% in the past 24 hours and now trades at $0.16.
The other impressive gainer from the top 36 alts is RNDR, which has soared to $9 after an 8.5% daily increase. AVAX, LINK, and NEAR are also in the green.
In contrast, TON, SHIB, and ADA have declined by somewhere between 2-4%. ETH, BNB, SOL, and XRP are also in the red but in a less painful fashion.
The total crypto market cap has declined by around $40 billion since yesterday’s peak and is now down to $2.450 trillion on CG.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Cryptocurrency
Ex-FTX Europe Exec Purchases Titanic Gold Watch for $1.5M: Report
A former executive of the European arm of the bankrupt cryptocurrency exchange FTX has bought a gold pocket watch recovered from the Titanic wreck for £1.175 million ($1.5 million), the largest sum ever spent on any piece from the memorable incident.
According to a Wall Street Journal report, German fintech entrepreneur and former head of FTX Europe Patrick Gruhn bought the 14-karat gold watch last Saturday from the English auction house Henry Aldridge & Son, a leading seller of Titanic memorabilia.
Former FTX Exec Buys Titanic Gold Watch
The pocket watch belonged to American property mogul John Jacob Astor IV, who sank with the ship after his pregnant wife, Madeleine Astor, was rescued in a lifeboat. Astor, the richest passenger aboard the Titanic, was returning from a honeymoon in Europe with his wife when tragedy struck in 1912.
Astor’s body was found a week after the Titanic sank by a steam vessel’s crew. The items found on his body included a gold watch, a gold pencil, a diamond ring, a gold buckled belt, and gold cufflinks. Astor’s son, Vincent, kept the watch for a while before giving it to the son of his late father’s secretary, whose family eventually sold it to John Miottel, a private collector, in the 1990s.
Miottel’s collection auctioned the watch last week, and Gruhn bought it for his wife, Maren Gruhn, revealing they would display the item, engraved with Astor’s initials, in U.S. museums.
“We want people in the U.S. to be able to see and admire this historic relic,” said the former FTX executive.
Gruhn further revealed that he felt connected to Astor because their families left Germany for the U.S. in search of wealth.
FTX Dropped Lawsuit Against Gruhn
Gruhn spearheaded FTX’s European arm until the global entity went bankrupt in November 2022. CryptoPotato reported a few months before FTX’s implosion that Gruhn and the disgraced founder Sam Bankman-Fried (SBF) were working towards establishing a regional headquarters for the exchange in Dubai.
Following the exchange’s collapse, the firm’s bankruptcy estate filed a lawsuit against Gruhn and other former executives to recover $323 million SBF spent in acquiring the Swiss company that became FTX Europe on the basis that the founder overpaid. However, the case was dropped in February, with the former executives agreeing to buy back the European assets for roughly $33 million.
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Cryptocurrency
Bitcoin Explodes Above $63K as the Bulls Eye This Level Next (BTC Price Analysis)
Bitcoin’s price has been going through some major moves throughout the past couple of weeks. The bulls are fighting to reestablish their dominance, staging a convincing recovery above $60K. But will it last?
Technical Analysis
By TradingRage
The Daily Chart
The price has been oscillating inside a descending channel on the daily chart for the past couple of months. The channel was briefly broken to the downside a few days ago.
However, BTC quickly rebounded and climbed back inside the channel, making a fake bearish breakout. With the $60K level also turning into support, the price will likely target the $68K resistance level in the short term.
The 4-Hour Chart
Looking at the 4-hour chart, it is evident that the price has quickly recovered from below the channel and the $60K level. The midline of the descending channel is now the next target.
Meanwhile, with the RSI approaching the overbought zone, the price might experience a pullback soon. The continuation of the bullish trend is dependent on whether the price can finally break the channel to the upside.
On-Chain Analysis
By TradingRage
Bitcoin Miners Position Index
While Bitcoin’s price has been trading below the $75K level, many market participants have been offloading their coins as they assume that the bull market might be over or a much deeper pullback is probable. However, miners are not in this group.
This chart demonstrates the Miners Position Index (MPI) metric. It measures miners’ selling pressure. Values above 2 can be considered dangerous, as they show massive destruction by the miners.
As the chart depicts, the MPI has been dropping rapidly over the last few months. This is a good sign, as the Miners’ selling pressure is declining. Thus, with sufficient demand, Bitcoin’s price can once again begin a rally toward $80K and even higher prices.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
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