Arthur Hayes forecasts further Bitcoin price correction

Forced liquidations in the near term will put further pressure on Bitcoin’s price, according to Arthur Hayes, founder and former CEO of BitMEX.

He pointed to the liquidation of 24,500 BTC by the Canadian Purpose Bitcoin ETF (BTCC) in the evening of June 17, shortly before market close.

1/

BTCC — Purpose ETF puked 24,500 $BTC into the North American Friday close. I’m not sure how they execute redemptions but that’s a lot of physical BTC to sell in a small time frame. pic.twitter.com/BY7foKdPjY

— Arthur Hayes (@CryptoHayes) June 19, 2022

«I’m not sure how they redeem, but that’s a lot of physical bitcoins to sell in a short period», the expert said.

On the weekend, when fiat channels are closed, BTC price fell to a low of $17,600 on high volume, Hayes noted. After the dump of almost 20%, the market quickly rose on low volume. In his view, it looks like a forced seller triggered a run on stops.

2/

Over the weekend, while the fiat rails are closed, $BTC dropped to a low of $17,600 down almost 20% from Friday on good volume. Smells like a forced seller triggered a run on stops. pic.twitter.com/X01FnDw1IL

— Arthur Hayes (@CryptoHayes) June 19, 2022

«Given the poor risk management by crypto lenders and overly generous terms, expect more pockets of forced BTC and ETH selling as the market figures out who is swimming naked», Hayes wrote.

However he believes this will present seasoned investors with the opportunity to buy “coins from those forced to sell, regardless of price.”

Earlier, Euro Pacific Capital president Peter Schiff warned that Bitcoin’s return above $20,000 does not mean it has bottomed. He believes the cryptocurrency will test the level around $5,000.

Head of DoubleLine Capital Jeffrey Gundlach said that he wouldn’t be surprised by Bitcoin falling to $10,000.

In April, Hayes predicted a market crash by the end of the first half of the year. He argued that by then Bitcoin and Ethereum would test levels of $30,000 and $2,500 respectively.

Leading cryptocurrencies fell below these levels in May.
At the start of June, Hayes stated that the Bitcoin, trading near $30,000 at the time, had bottomed in the current cycle.

Recall that in 2021 the Purpose Bitcoin ETF became the first exchange-traded Bitcoin fund to receive regulatory approval in Canada.

Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.