Arthur Hayes, the co-founder of BitMEX, recently sold off around $13 million worth of cryptocurrencies, including Ethereum (ETH), Pepe (PEPE), and Ethena (ENA). This sparked some interest, so let’s dive into why he might have done this.
Why the Sell-Off?
LookonChain reported that Hayes sold his holdings over a six-hour period. This included a significant amount of ETH, a large chunk of ENA, and a smaller amount of PEPE. This happened during a broader market correction, with Bitcoin dipping below $113,000.
Hayes believes the global economy is heading for trouble. He points to several factors:
- Delayed impact of US tariffs: These are starting to hit the economy harder now.
- Weak labor market: Recent data shows some weakness in the job market.
- Slow credit growth: Major economies aren’t creating credit fast enough to boost growth.
He worries this could lead to deflation and a market correction. Because of this, he’s moving away from volatile assets like crypto.
Hayes’s Price Predictions
Hayes is predicting Bitcoin (BTC) will hit $100,000 and Ethereum (ETH) will reach $3,000. If he’s right, we can expect even more price drops.
The Current Crypto Market
At the time of writing, the total value of the crypto market is around $3.62 trillion. Things aren’t looking great:
- Bitcoin (BTC): Trading around $113,015, down slightly.
- Ethereum (ETH): Down more significantly, around $3,414.
- Altcoins: The Altseason Index is low (33), suggesting altcoins are losing momentum. Bitcoin’s dominance is increasing, meaning investors are moving towards Bitcoin and away from other cryptos.
Overall, the market is cautious, with Bitcoin holding up better than other cryptocurrencies, even though some positive sentiment remains.