Former BitMEX CEO: Altcoins can plummet 90% of their value

In one post gloomy on medium, former BitMEX CEO Arthur Hayes predicted that altcoins could crash by 90% of their current value.

Hayes is also skeptical that the “diamond hand” can save Bitcoin from a “catastrophic crash”. He argued that institutional investors will not hesitate to sell positions if market conditions change:

“They do not trust or are not loyal to Satoshi.”

Even so, he believes that Bitcoin and Ethereum, the top two cryptocurrencies, will fall a lot less than altcoins:

“If Bitcoin trades below $ 30,000 and Ether trades below $ 2,000 in a period of three to six months, I’ll sell all of my Sh * tcoins …

According to Hayes, the US Federal Reserve is increasingly seeing tightening as the main headwind for the crypto market.

There used to be a positive correlation between the Fed’s balance sheet growth and the price of Bitcoin. Now, however, as the central bank is steadily reducing its bond purchases, the “money printer” narrative is no longer relevant:

“If M2 is set to 0% – and possibly negative, the natural conclusion is that Bitcoin (without asymptotic growth in the number of users or transactions processed over the network) also has the potential for a much deeper reduction.”

The former BitMEX CEO said that central banks around the world are currently grappling with the fight against inflation, which has become the “public enemy of Bitcoin”:

“Every morning people wake up worried that the prices of meat, vegetables, taxis, rent and other necessities are going up faster than their wages.”

He believes the Fed could change its restrictive tone if the consumer price index (CPI) falls below 2%, which is very unlikely.

Alternatively, the central bank could reverse course if inflation is no longer a priority ahead of the US election in November 2022.

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