It looks like bitcoin is being priced as a growth stock by the market. With the Nasdaq 100 sliding in a similar fashion to bitcoin, does this correlation mean bitcoin can crash to $30,000?
Arthur Hayes, co-founder of the Bitmex cryptocurrency exchange, is certainly pro bitcoin and cryptocurrency, but he feels that before the next bull market for crypto, it may well take a plunge as it gets dragged down by the Nasdaq 100.
He wrote in a recent blog post that the current economic situation, with interest rates being hiked higher and very weak economic growth, tech stocks could fall sharply, bringing the crypto market down as well.
“If you believe in unicorns, the Loch Ness Monster, and the Easter Bunny, then it is possible that you believe big tech will not suffer due to rising nominal interest rates, worsening global fiat liquidity conditions, and falling economic growth,”
He added:
“As I have beaten into readers’ heads since early this year, the bankers who preside over the fiat money Tower of Babel finally woke up and decided to press pause on the money printer,”
Hayes believes that the Nasdaq might fall to 10,000 given the Fed’s increasingly hawkish tone and a promise that interest rates will be hiked every month from now on.
“The Fed and all other central banks are fighting inflation, and must therefore tighten monetary conditions,”
Hayes does admit however that his forecast could be incorrect.
“Nothing is certain — I only ascribe probabilities to outcomes and trade accordingly. I fully believe there’s a chance my market prognosis might be wrong. That is fine — in that case I only lose the option premium paid on my crash protection.”
He is still extremely bullish on crypto and says that he is continuing to buy altcoins, even though he is preparing himself for the short term drop that he believes is coming.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
