In a recent Medium blog post, former BitMEX CEO Arthur Hayes predicted that the Ethereum price would drop to $2,500 by the end of June. He also expects Bitcoin to test the $30,000 level before the start of the third quarter.
The former BitMEX boss pointed out that Bitcoin and Ethereum are “highly correlated” with the Nasdaq-100 stock market index when making his prediction.
The 90-day correlation between Bitcoin and the Nasdaq-100 has reached a new record high. According to Hayes, the crypto market will take a hit if tech stocks continue to underperform.
Although some altcoins have already lost 75% of their value from their peak prices, as you can see, according to Hayes, the worst-case scenario may not have happened yet.
Besides, some names like Galaxy Digital CEO Mike Novogratz think that the crypto market could go to the moon in 2022 if the US Fed returns to loose monetary policy. But Hayes says the Fed and other central banks won’t be backing down anytime soon as they have to deal with the inflation monster.
On the other hand, Hayes also stated that although he expects a decline in Bitcoin and Ethereum, there are a number of altcoins that he finds attractive and started to accumulate. Hayes said this was just his “prediction” and he reserved the right to be wrong.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.