Bitcoin is currently trading around $22,000, while Ethereum is just over $1,200. Both tokens have capitulated heavily in the last 24 hours. Probably facing more weaknesses. Concerns over the US Federal Reserve’s (FED) rate hike this week, rising inflation, and potential chaos in the options market have triggered the latest crypto debacle. Meanwhile, a famous name made his comments on the current state of the crypto market. Here are the details…
BitMex founder conveyed his expectations for Bitcoin and ETH
BitMex founder Arthur Hayes said that if Bitcoin and Ethereum fall below a certain level, they can prepare for serious losses. Hayes sees a drop below $20,000 for Bitcoin and says spot selling will be bullish. If it drops below $1,000, it sees a similar scenario being played out for Ethereum. Hayes says open interest and position in the options market drive his forecast.
In a Twitter thread, Hayes said in a Twitter thread that if Bitcoin and Ethereum break levels, people have to put up more collateral to hold their positions, with “large He said it would create “selling pressure”. However, those who are unable to successfully close their positions will have to sell, creating more selling pressure on the two tokens. Hayes warned that falling below levels could result in an unprecedented amount of sales in the market. Hayes used the following phrases:
As for graphics, you’d better pull out your ‘Lord Satoshi’ prayer book and hope your master will be kind to the spirit of the crypto markets. Because if these levels deteriorate, you can shut down your computer because your graphics will be useless for a while.
Liquidation risks and sharp declines: The latest situation in BTC and altcoins
As we have reported as Kriptokoin.com, with the recent sharp decline in Bitcoin and Ethereum prices, several large position holders are at risk of being liquidated. The biggest of these is the embattled Celsius, which is facing a $522 million liquidation of its Bitcoin position. Michael Saylor’s MicroStrategy faces a similar situation, but its liquidation could be in the billions. Saylor says that Bitcoin prices should be around $3000 for such a scenario, while critics argue that the real price may be higher.
Such a massive liquidation would cause a sharp drop in crypto prices. MicroStrategy, which has the highest stake in Bitcoin of any publicly traded firm, currently holds the token with unrealized losses of close to $1 billion. BTC is changing hands at $22,450 at the time of writing. Ethereum (ETH) is trading at $1,224. BNB dropped to $226 while ADA dropped to $0.49. XRP is changing hands at $0.31, down 3.3 percent. Although cryptocurrencies such as SOL, DOT, SHIB, AVAX have recorded slight gains in the last 24 hours, their weekly losses are in the range of 20 and 30 percent.
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