Arthur Hayes regularly writes interesting blogs about the industry and this time the former CEO and founder of BitMEX believes that Bitcoin has bottomed out. Most people who took too much risk in 2021 and got into financial trouble because of it are according to Hayes now through their Bitcoin stocks.
Centralized lending platforms
Hayes explains that the centralized lending platforms that ran into problems in recent months are the first to sell their Bitcoin to stay afloat. “If you look at the balance sheet of these heroes, there is no Bitcoin on it. This is because they had to sell their Bitcoin because they went bankrupt,” said Hayes.
In a blog post from December 10 Hayes said practically the same thing. During a so-called liquidity crunch, massive Bitcoin transactions took place on the exchanges of both centralized lending platforms and hedge funds to avoid bankruptcy.
“I cannot prove that all of the Bitcoin these centralized players had sold during the crashes, but it seems that they tried to sell all of the liquid crypto they had before they went bankrupt,” Hayes continues. “I will hold on until the money printer says brrrr one more time,” Hayes shouts in the above tweet.
Recovery in 2023?
At the time of writing, the market is still in a deep, cold and dark winter. The fall of FTX has now been about a month and is still fresh in the minds of the market. But Hayes believes that the misery will not last long and that the market could look very different in 2023.
“I believe the US Treasury bond market will be off track in 2023 due to the Federal Reserve’s interest rate hikes. At that point, I expect the Federal Reserve to turn the printers back on and then… boom shaka-laka, then Bitcoin and other risk assets will skyrocket again,” the flamboyant entrepreneur continues.
In the end it is all a matter of waiting and Hayes is certainly wrong sometimes. At least in the short term, it is difficult to predict what the future holds. In the long run, Hayes is often quite accurate with his predictions.