New predictions from Hayes are in line with that of many analysts who think prices could fall further if prices reach the $20k support.
BitMex co-founder Arthur Hayes has opined that the bullish run is about to get steeper. While admitting his previous predictions were wrong, Hayes stated that the second half of the year will be more troubling for investors in altcoins.
Recall that Hayes previously predicted that Ethereum will not fall below $1700. He also expected Bitcoin to stop its plunge at $25,000. However, the two cryptocurrencies plunged below that. Now, Hayes said:
“My $25,000 to $27,000 Bitcoin and $1,700 to $1,800 Ether bottom levels lay in tatters.”
Just yesterday, Bitcoin sunk below the $21,000 mark before retracing back above the $21000 mark. Also, Ethereum lost over 10 percent of its value on the last day to settle below the $1,100 mark.
Arthur Hayes Bases Predictions on Fed Rate Hike
Hayes’ new predictions are in line with that of many analysts who think prices could fall further if prices reach the $20k support. Hayes based his most recent prediction on the newly introduced Fed rate hike. By June 30, the Fed will enact a 75bps rate hike and begin shrinking its balance sheet.
The BitMex co-founder expects the newly introduced Fed rates will compel many investors to avoid volatile assets like cryptocurrencies. He further expects that the market will be hardest hit between June 30-July 5 when the Fed’s new rates kick in. According to Hayes, he expects the outlook to remain dour for the next 6 to 12 months.
Altcoins to Drop by Another 50%
Beyond Bitcoin and Ethereum, Hayes expressed pessimism about altcoins with no real utility. While these coins have lost as much as 90% of their value already, Hayes believes they may lose another 50% in the next 6 to 12 months.
According to a report, as much as 72 out of 100 top cryptocurrencies have fallen by 90% or more. Another 50% plunge, as predicted by Hayes, would prove catastrophic for the altcoin holders. Despite his prediction, Hayes is confident a bullish run is on the seams for the Ethereum Name Server project and NFT marketplace, Looksrare.