Arthur Hayes Warns of ‘Global Collapse’ and Possible Bitcoin Crash

Arthur Hayes Warns of ‘Global Collapse’ and Possible Bitcoin Crash

Participate in a live on the Crypto Banter Channel, Arthur Hayes explained his investment strategy in Bitcoin and other cryptocurrencies in the event of a global financial industry crash.

According to the founder of the BitMex brokerage, Bitcoin will not be a safe haven because it still has a high correlation to risky assets and can be affected like any other asset.

This means that Hayes is waiting for a major correction before Bitcoin enters a real bull run. However, this could be the perfect opportunity to invest.

Finally, the trader also spoke about the rumors that China would discontinue Bitcoin, noting the differences between Hong Kong. He also commented on his new favorite cryptocurrency, GMX.

Arthur Hayes Projects Bitcoin Retracement Target

While he doesn’t believe Bitcoin will fall to the level it reached with the FTX bankruptcy (below $16,000), Hayes doesn’t think we’re in a bull market yet. All in all, the trader points out that bitcoin will undergo another significant correction before moving higher.

“I believe that Bitcoin has really not escaped its correlation with global risk assets.”

“He may have done really well lately with that little jump from under $16,000 to $24,000”continued Hayes. “But I think we are waiting for a ‘correlation one’ moment. By that I mean that everything is collapsing en masse, including Bitcoin.”

Finally, he points out that the bears may break the $20,000 support following the movement of other assets, but the decline will not go much further.

“So once [que este movimento] When it’s over, I’m super optimistic about this space, even if everything else goes wrong, because I believe in the response the monetary and fiscal authorities will give to another unpleasant situation.concluded Hayes. “They will hand out money to people and print it.”

In other words, the founder of BitMex believes that monetary expansion will weaken fiat currencies again, causing Bitcoin to rise due to its absolute scarcity.

BitMex Founder Targets Rumors in China

When asked about the rumors that China is ready to lift its ban on cryptocurrencies, which could lead to a price hike in the market, Arthur Hayes explains that the reality is very different.

“It’s becoming pretty obvious that mainland China is pretty cut off from the rest of the world, but I believe Hong Kong is going back to what it was in the late 1990s, early 2000s.”explained the trader. “They will allow certain things in Hong Kong and they will not allow [essas mesmas coisas] in mainland China.”

“For example, regulation of cryptocurrencies. There are no crypto exchanges in China, no way to get a license, but apparently there is a way to get them in Hong Kong.”

Either way, Hayes believes the move is a positive one as Hong Kong could be a cover for China to connect with other countries. However, he warns that this also means control, as we are talking about Bitcoin ETFs and not Bitcoin in its pure form.

“If all ‘Chinese bitcoins’ are in the hands of a bunch of managers, who are Chinese asset managers, then that’s great. No real economic freedom is achieved, it is just a financial return on Bitcoin.”

Source: Live Coins