The recent crash in the cryptocurrency markets has taken everyone by surprise, especially Bitcoin. Many coins lost their value drastically and very quickly at that time. Even the number one cryptocurrency Bitcoin took a big hit as investors continued to sell in a panic. While many hope for a recovery, the storm is still building. Also, there are many speculations in the market where investors are thrown into disarray.
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With all the chaos in it, it comes as no surprise that the BitMex co-founder is predicting lower levels for Bitcoin and Ethereum. according to HayesBitcoin will rest at $25,000-$27,000, while Ethereum will stay at $1,700-$1800. This is a far cry from what both were circulating a few months ago.
Regarding his reasons for making the predictions, Hayes notes that Terra’s recent selloff of 80,000 BTC has dampened the Bitcoin selling frenzy.
Another reason for this particular bottom is that BTC lags while stocks recover. Last week, while Wall Street saw some positivity, bitcoin instead fell to $29,000+ from May 29 to May 30. On May 31 and June 1, the price rose to $31,000, but is now fluctuating between $29K-$30K at press time. .
The cryptocurrency market started a downtrend when the Federal Reserve announced a tax hike. While some investors were still hesitant about whether to sell or not, the market took a turn for the worse once the tax took effect.
The accident caused panic selling, and many investors lost their investments. For example, Bitcoin that reached the $40K resistance surged lower and has lost at least 9.40% since then. Aside from the drop in cryptocurrency prices, the global cryptocurrency market has also fallen dramatically.
Is there any hope for bitcoin and ethereum to recover?
According to Hayes, no one can expect a recovery in the near future. The increase in Federal Reserve rates was to help fight inflation. Unfortunately, these conditions still prevail, and the rates still exist. Therefore, the market is still not ready to move.
Another reason for the downward trend getting out of control is the short-term cryptocurrency investors. This group does not believe in waiting for profitability to return.
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They are more willing to sell at a lower loss than to hold their assets with no certainty for future appreciation. Even so, Hayes believes recovery may come later. But if that happens, many sellers have to get out of their positions and grab some value.
As for when to expect the rally, Hayes hinted that it could happen when short-term owners sell their properties. Therefore, he advised all investors to be patient and still hope that Ethereum will reach the $10,000 forecast by the end of the year.
Featured image from Pixabay, chart from TradingView.com