The former CEO of BitMEX and the current Chief Investment Officer of the Maelstrom family office, Arthur Hayes, expressed a negative view of Bitcoin. On January 22, 2024, Hayes posted on X (previously Twitter), suggesting that the price of Bitcoin could drop below the $40,000 level.
Arthur Hayes’s negative view of Bitcoin
This isn’t the first time he has conveyed a pessimistic outlook on Bitcoin. Before the approval of the spot Bitcoin Exchange Traded Fund (ETF), he predicted that following the ETF’s approval, there might be a healthy 20% to 30% price correction in Bitcoin as reported by Todayq News.
Despite Hayes’s forecast of Bitcoin dropping to $40,000, he has currently purchased some put options with a strike price of $35,000 expiring on March 29, 2024. He believes the decline will persist until the U.S. Treasury makes its quarterly refunding announcement on January 31.
According to Hayes’s post on X, he may have acquired these options at 0.025 BTC per share, totaling 5 BTC in value. Considering the strike price chosen by Hayes, it appears that he bought options that are deep in the money (ITM), which could potentially yield him decent profits over an extended period based on current market conditions.
As of now, Bitcoin is trading near $40,700, and in the last 24 hours, it has experienced over a 2.5% downside momentum. Looking at Bitcoin over a longer period, it is down by over 4.5% in the last 7 days and over 6.7% in the last 30 days. This overall bearish momentum reflects the current sentiment of investors and retailers in the market.
Historically, the crypto market has witnessed significant surges following the approval of ETFs. Some attribute the recent price decline in Bitcoin to profit booking after the approval of the Bitcoin ETF.
Also Read: Approval of Bitcoin ETF will destroy BTC nature, says Arthur Hayes
Bitcoin technical analysis and upcoming views
According to expert technical analysis, Bitcoin is currently at its strong demand zone, a crucial level. If this level is breached, we may witness a significant fall in the price of Bitcoin in the coming days.
However, the overall chart and market sentiment are negative, and there are indications of a head and shoulders price action pattern, a bearish signal. The current level of Bitcoin is at the neckline, which is at $40,750. On the daily time frame, if any candle closes below $40,400, we may potentially experience a decline to the $38,000 level, which serves as another support level.
