At the beginning of this month, the crypto market was positive. In the meantime, that optimism has given way to fear and this is also reflected in the bitcoin (BTC) and Ethereum (ETH) to race. Prices have fallen and the Fear & Greed Index meanwhile, is in fear again. However, this development is not necessarily negative. According to Arthur Hayes, co-founder of crypto exchange BitMEX, this ‘crash’ means that now is the time to buy. Hayes mainly talks about ethereum.
Hayes on Ethereum
Hayes took to Twitter to discuss ethereum, among other things. He spoke, among other things, about short and long-term strategies. People with a short-term strategy may have misjudged the market, he says. Long-term, Hayes is a lot more optimistic. For example, the long-awaited Ethereum Merge is coming and that is, according to the ex-BitMEX CEO, a reason to perhaps purchase some ETH.
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Ouchie. Time to do some thinking.Are you trading a medium to long-term fundamental thesis?
Or are you trading short-term price action? pic.twitter.com/HDrqlqgTAJ
— Arthur Hayes (@CryptoHayes) August 19, 2022
Ethereum Merge and the Bitcoin Halving
Arthur Hayes is by the Ethereum Merge bullish. In a blog post he talked about it. The price may drop briefly, but it will turn out well for ethereum investors in the future. Hayes compares the Ethereum Merge to the Bitcoin halving and foresees a similar price trend. Hayes further noted the following, among other things:
“If the Merge is successful, traders will buy ETH today, knowing that the higher the price goes, the more the network will be used and the more deflationary it will become. This will drive the price even higher, which will lead to more network usage, etc. This is an upward spiral for bulls.”
The Ethereum Merge is getting closer and the anticipation is growing. It seems that the merge will already take place in September. This will ensure that the Ethereum blockchain of a proof of work (PoW) system will transition to a proof of stake (PoS) consensus model.