Arthur Hayes, former CEO of BitMEX, stated that Bitcoin has likely reached a bottom after recent liquidations.
Market cleansing and rationalisation
Hayes claims that Bitcoin has reached its bottom as “everyone that could go bankrupt had gone bankrupt.” This statement is a sign that the market has undergone a significant shakeout, and is now ready to experience a new era. New entrants will be coming to the crypto market and investors will have new opportunities.
Hayes believes the market is in a better place than it was one year ago. According to Hayes, the market has gone through a period called “cleansing” and is now ready for new investors. He believes that the market has undergone significant rationalization, which has resulted in a greater efficiency in its operations.
Bitcoin was first liquidated
He believes that centralised lending platforms would have tried to call their loans first when they first encountered financial difficulties. Then they would have sold the largest liquid asset they had. This was Bitcoin for him.
“I cannot prove that all Bitcoin held in these institutions failed was sold during multiple crashes, but it appears as though they tried to liquidate as much crypto collateral as possible right before they went bankrupt.”
A mature, less speculative market
Hayes is positive that the market will continue growing in the near future, and that it will mature further. Hayes believes that the market will become more efficient with less speculation and more rational trades. He believes this will result in greater liquidity and higher prices for investors.
Although the recent market crash was a difficult experience for many investors Hayes believes that it has been an important part in their learning process. Hayes believes that investors should learn from their mistakes and be prepared to face future market crashes.
Hayes believes that investors should have a long-term perspective on the market and not get caught in short-term speculation. Hayes also believes that the market will become more efficient and investors will be able to make better decisions. Investors will see increased liquidity and higher prices.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.
