BitMEX CEO Arthur Hayes has written yesterday in BitMEX’s mail digest that we could see new lows in bitcoin’s price soon enough. This after a new technical analysis that shows what he calls the “Bear Market Blues”. He had predicted earlier this year that bitcoin could reach $50k by December, but now has retracted.
BitMEX CEO Arthur Hayes Says Bitcoin Could Fall Under $2000
BitMEX CEO Arthur Hayes had been till today, a bull market believer. But now with the new developments and the market moving sideways since some time ago, he has changed his original bullish predictions and has embraced the bear tone that other traders had also already predicted.
But he does with an analysis that could surprise some, having volatility at the center of it all. Volatility has been very low in the past month, with traders even joking that bitcoin could very well be the new stablecoin. In his own words:
“Bitcoin requires volatility if it is ever to gain mainstream adoption. The price of Bitcoin is the best and most transparent way to communicate the health of the ecosystem. It advertises to the world that something is happening–whether that is positive or negative is irrelevant.”
so, according to BitMEX CEO Arthur Hayes, this lack of volatility is the thing that tires traders that can get long or short but are not too fond of holding in a stable market.
Volatility And New “Sweet Spot”
Hayes puts again importance in volatility because volatility makes the headlines: there is nothing cooler than the media reporting on the high prices of bitcoin or how low has it get. This movement, though sentimental, is highly informative for people outside the normal investment environment and can make people get into the cryptocurrency ecosystem. he states that:
The Bitcoin price volatility is the gateway drug into the ecosystem. The media writes about things that move; therefore no movement, no coverage.
So, for BitMEX CEO Arthur Hayes, the most important thing to recover the market is volatility. If the lack of volatility continues (and nothing seems to show otherwise) prices will keep slowly falling. The main question is which is the new bottom?
BitMEX CEO Arthur Hayes describes the new “sweet spot” as a price between $3000 and $2000, calling the bottom between these two prices. So for this year, a December pump seems quite unlikely, even with institutional investment coming right around the corner.