BitMEX co-founder, Arthur Hayes, has recently shared his predictions regarding a potential price correction for Bitcoin following the introduction of the Spot Bitcoin ETF. Hayes, the former CEO of BitMEX, has provided valuable insights into the possible price impact on Bitcoin after the approval of Spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).
In his analysis, Hayes projects a 20% to 30% price correction for Bitcoin by March 2024. He warns that the correction phase could be relatively steep if there is a significant increase in traders’ interest in Spot Bitcoin ETFs. “I expect Bitcoin to experience a healthy 20% to 30% correction from whatever level it has attained by early March. The washout could be even more severe if the slate of US-listed spot Bitcoin ETFs has already commenced trading,” Hayes explained.
Hayes also predicted a 30% to 40% correction in Bitcoin’s price if the value of the cryptocurrency surges to its previous all-time high in 2021. “Imagine if the anticipation of hundreds of billions of fiat flowing into these ETFs at a future date propels Bitcoin above $60,000 and close to its 2021 all-time high of $70,000. I could easily see a 30% to 40% correction due to a dollar liquidity rug pull. This is why I cannot buy Bitcoin until these March decision dates have passed,” the crypto exchange founder stated.
Meanwhile, a crypto enthusiast on X (formerly Twitter) has stated that the introduction of Spot Bitcoin ETFs would have a long-term effect on the crypto space. This may include the anticipated rise in Bitcoin’s price as many analysts predict Bitcoin’s value reaching unprecedented heights following the approval of Spot Bitcoin ETFs by the SEC.
However, crypto investors like Hayes have previously disclosed that the launch of a Spot Bitcoin ETF could have a potentially negative existential influence on Bitcoin, particularly if ETFs garner more attention from investors. While there are differing views on the impact of Spot Bitcoin ETFs on Bitcoin, the final decision on its launch is still pending. The SEC is slated to reveal its verdict on the approval of Spot Bitcoin ETF applications by Wednesday, January 10, 2024.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Arthur Hayes |
| Companies | Shutterstock, United States Securities and Exchange Commission, X, BitMEX, TradingView.com |
| Currencies | Bitcoin |
| Securities | None |
