Former BitMEX CEO Arthur Hayesshared his bullish forecast for Ethereum, the largest altcoin, in a recent blog post.
Koinfinans.com As we reported, Hayes said if the transition to proof-of-stake (PoS) is successful and the US Federal Reserve reverses its hawkish stance, Ethereum pricebelieves the company could skyrocket to as high as $5,000 after the merger. Hayes also explained that if there is no development on the FED front and things get better, the scenario will show the levels of $ 3,500 at that time.
Hayes also stated that he believes the long-awaited event, which is expected to take place this September in particular, is not actually priced by the market. Hayes is confident that this event will not be a “Buy rumor, sell news” event.
After the merger, Ethereum It will be deflationary, which will make the cryptocurrency more scarce. The rate of deflation will continue to rise due to the growing popularity of decentralized finance (DeFi) applications.
On the other hand, Hayes is also known for his frequent criticism of Ethereum. Hayes, who correctly predicted that the ETH price will fall into the double-digit region in 2018, is known for correctly interpreting the developments despite the criticism.
But Hayes started believing in the Ethereum ecosystem later in 2020. The entrepreneur, known for his arguments, also believes that decentralized finance provides a “credible alternative” to the current financial system.
The former BitMEX CEO also warned that if the merger does not come and the Fed continues to raise interest rates, Ethereum will return to the “dark ages”.
At the time of writing, Ethereum is trading at $1,658 according to CoinMarketCap after a rally. The second-largest cryptocurrency has dropped 65.93% from its record high.
You can follow the current price action 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.