In an interview on the Scott Melker Wolf of AllStreets podcast, Arthur Hayes, ex-CEO of BitMEX, says in his view that after recent liquidations, Bitcoin has probably now made a bottom.
Market cleansing and rationalisation
According to Hayes, Bitcoin has finally bottomed out as “everyone who could go bankrupt has gone bankrupt.” Hayes’ statement is an indication of the fact that the crypto market has gone through a significant shakeout and that it is now ready for a new era of growth. This new era will come with new entrants and new opportunities for investors.
Hayes believes that the market is now in a much better position than it was a year ago. In his view, the market has been through a period of “cleansing” and that it is now ready for a new wave of investors. He also believes that the market has seen a significant amount of rationalisation, meaning that the market has become more efficient in its operations.
Bitcoin was liquidated first
His view is that when centralised lending platforms first entered into financial problems they would have tried to call in their loans first, and then they would have sold the most liquid asset they had. For him this was Bitcoin.
“I can’t demonstratively prove that all Bitcoin held by these failed institutions was sold during the multiple crashes, but it does look as if they tried their best to liquidate the most liquid crypto collateral they could right before they went under.”
A mature and less speculative market
Hayes is confident that the market will continue to grow in the near future and that it will become more mature. He feels that the market will become more efficient, with less speculation and more rational trading. He believes that this will lead to greater liquidity and better prices for investors.
The recent market crash has been a difficult experience for many investors, but Hayes says that this experience has been an important part of the learning process. He believes that investors must learn from their mistakes and be prepared for future market crashes.
It’s Hayes’ belief that investors should take a long-term view of the market and not get caught up in short-term speculation. He also thinks that the market will become more efficient, enabling investors to make more informed decisions. This will lead to greater liquidity and better prices for investors.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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