According To Arthur Hayes, Ethereum Merge Trade Is “A No-Brainer”

In the run-up to “The Merge,” co-founder of BitMEX Arthur Hayes has repeated his bullish outlook for Ethereum.

The co-founder of BitMEX claims that the Ethereum Merge trade is “a no-brainer.”

He confirmed that he was long on ETH because of a significant change the impending Proof-of-Stake upgrade, codenamed “The Merge,” is expected to bring to the network in a Bankless interview on Wednesday.

Hayes asserted that the post-Merge issuance cut for ETH could act as a catalyst for price momentum, even going so far as to claim that it was “more powerful” than the current macro environment, which has caused a months-long decline in the value of crypto and other asset classes as a result of the Federal Reserve raising interest rates to fight inflation.

According to Arthur Hayes, the market’s desire for Ethereum should support ETH’s future growth. Hayes emphasized that despite ETH’s current low values, Ethereum remains DeFi’s primary hub and is still in use.

“Unless you’re telling me that DeFi usage falls off a cliff with issuance as well, then you’re saying demand is greater than supply, therefore the price has to rise in my opinion,” he said.

Hayes said that even though The Merge is supposed to ship in less than a week, the market can still be skeptical that it will launch well. Hayes thought it was acceptable to have questions about the event.

“I don’t think people believe the Merge is going to happen still. If you’ve been around long enough you’ve heard Vitalik talking about it for, I don’t know, five? Six? Years.”

He continued by saying that The Merge story would probably be more compelling if it hadn’t been scheduled so soon after the cryptocurrency liquidity crisis, when several major players fell apart as a result of Terra’s May explosion:

“Imagine the bullishness of the average trader if they hadn’t just lost all their money to Terra and Three Arrows Capital”

Hayes stated that the update itself may be a “sell the news” event that causes a brief 20% price decrease after it has occurred, despite his conviction that the Merge will function as a positive stimulus for ETH.

At the time of writing, ETH is trading at $1693.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News