In his latest article dated September 03, former CEO of crypto exchange BitMEX and crypto analyst, Arthur Hayes, has predicted that in the worst case scenario, Bitcoin may gradually fall to $50,000, and altcoins would fall deeper.
Hayes wrote, “Assuming the Fed doesn’t cut rates before the September meeting, I expect T-bill yields to stay firmly below those of the RRP. As such, RRP balances should continue to rise, and Bitcoin, at best, will chop around these levels and, at worst, slowly leak lower towards $50,000.”
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Hayes, had previously expected that that the bull market might start anew in September, but now, for the time being, he remains bearish. Hayes pointed out that policy intervention might happen in late September, and until then, Bitcoin will ‘continue to fall at best’, on the other hand, altcoins are expected to fall deeper. He, however, ensures that he is still long in an unleveraged manner.
The only additions to his portfolio, Hayes revealed, would be the growing numbers of reliable altcoins projects. Moreover, Hayes has predicted that projects that pay real money to their users to use a product will surge once the ‘fiat liquidity taps are predictably ratcheted higher’.
Hayes’ predictions come as the crypto industry awaits the next Federal Open Market Committee (FOMC) meeting on September 18, and he discussed its implications for crypto. As per FedWatch, the probability of Fed cutting interest rates by 50 basis point in Sept is 41%, at the time writing.
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Also Read: Arthur Hayes: $70k Bitcoin & $4k ETH can Spark 2024 Altcoin Rally
