Following the revelation of the FTX and Alameda Research case, the cryptocurrency market suffered a crash, with the FTX Token (FTT) dropping by nearly 80% in 24 hours.
Although the market rallied after Binance CEO CZ announced that his company would potentially acquire FTX, this decision was not final, although all cryptocurrency Unit prices fell.
Arthur Hayes: “Although I’m Hopeful for the Future of Cryptocurrencies in 2023, We May Be Heading to New Lows”
In this context, Arthur Hayes, former CEO of BitMex, thinks that the crypto market will soon reach new market bottoms. Despite the long-term bullish trend in the crypto market, Hayes predicts a deeper crypto crash.
“While I am extremely hopeful about the future of crypto in 2023, I believe we are on our way to new lows.”
Hayes also explained that the FTX collapse surprised him with the following words:
“A few days ago I asked a question on Twitter to find out who will be the new Lehman Brothers in this crypto lending cycle.
Many people said it would be FTX, and I frankly laughed it off. I never believed they would sink, but here we are. The catalyst for their downfall is, as always, a good business that overexpanded itself by eating cheap credit secured by high and rising valuations of assets on its balance sheet. As money became more valuable and the cycle turned, all its vulnerabilities were revealed for all to see.”
Hayes also expressed his admiration for Binance CEO CZ:
“And I must pay even more tribute to Baron CZ, when news broke that Binance might be buying FTX, I sent CZ the following message:
“I love you my friend. Big move, I respect a lot.”
*Not investment advice.
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