In the past few days, the conversation around the potential approval of a spot Bitcoin ETF (Exchange Traded Fund) has intensified, with both negative and positive news significantly impacting the price of Bitcoin (BTC). Amidst these ongoing ETF discussions, Arthur Hayes, the founder of BitMEX, published a blog post on Medium where he highlighted the possibility of a healthy 20% to 30% price correction for Bitcoin.
Arthur Hayes’ perspective on Bitcoin price correction
In Arthur’s blog post, he explicitly mentioned the potential for a 20-30% BTC price correction from whatever level it reaches by early March. Additionally, he suggested that there could be further correction if the United States lists spot Bitcoin ETFs for trading. However, he acknowledged that the approval of Bitcoin ETFs could attract billions of fiat into these funds, potentially driving BTC above $60,000 or even higher than its all-time high. In such a scenario, he warned of a possible 30% to 40% correction due to a “dollar liquidity rug pull.”
According to the blog post, 70% of Arthur’s portfolio consists of Bitcoin and Ethereum. His anticipation is based on a trader’s perspective, and he highlights that he is a disciplined and focused trader.
However, on December 23, 2023, Arthur had previously warned that the success of approving spot Bitcoin ETFs for asset management firms could destroy the nature of Bitcoin. One of Arthur’s concerns is the role of the major traditional asset manager BlackRock, which, according to him, aims to accumulate Bitcoin and issue tradable securities rather than promoting direct ownership.
Bullish sentiment amidst ETF speculation
As the potential approval of a spot Bitcoin ETF inches closer, the overall crypto market once again reflects a bullish sentiment. Currently, Bitcoin is trading near the $43,800 level, and in the last 24 hours, it has experienced nearly a 2% upside momentum. Examining BTC over a longer period, the price has surged only 3.3% in the last 30 days. However, investors and institutions are increasingly betting on BTC as the ETF approval deadline approaches.
