Back in July, when Bitcoin was trading around $7,500 and the price was climbing, Arthur Hayes, co-founder and CEO of cryptocurrency exchange BitMEX, predicted Bitcoin could continue to drop. He marked $5,000 as a possible bottom, before a big market rally could propel Bitcoin to an astonishing new all-time high of $50,000 by the end of the year.
While Bitcoin and the cryptocurrency market as a whole is searching for widespread adoption and critical developments tackling security flaws and solving scalability issues, Hayes made his assessment based on market behavior. In a July interview with CNBC, he explained why he believes the summer months and a financial world of globe-trotting vacationers is at play. His expectation: the markets will heat up in Q3 and Q4.
Hayes is a former equity derivatives trader and market-maker for Deutsche Bank and Citibank’s Exchange Traded Funds (ETF). He co-founded Hong Kong-based BitMEX in 2014. The exchange is now valued at $3.6 billion on a daily trading volume of roughly $2 billion. It has become “the most liquid crypto-coin trading platform” in the world by offering up to 100x leverage trading and Bitcoin derivatives trading – without any participation from US residents, who can’t trade on BitMEX.
BitMEX co-founder Ben Delo, Britain’s first crypto billionaire, has also said that Bitcoin’s volatility is what allows it to soar.
From 2013 to 2015, Bitcoin dropped from $1,200 to $200 but from 2015 to 2017, it also increased from $200 to its all-time high of $20,000.
For traders who have been investing in Bitcoin for several years, the recent price decline from $8,260 on July 24 to as low as $6,097 today, according to WorldCoinIndex, isn’t a signal of the end of Bitcoin. It’s a sign of increased volatility and an indicator that Bitcoin may rebound and go much higher than its previous all-time high.
But for investors without a billion-dollar cushion to weather the downturn, the market is bleak and its wildly unpredictable nature is threatening.
Delo, who agrees with Hayes’s prediction, says the high of $50,000 is predicated on an SEC-approved Bitcoin ETF.
https://cryptosilv.blogspot.com/2018/08/bitcoin-might-bottom-to-5000-before.html?m=1