Arthur Hayes Predicts Bitcoin Price Below $50K This Weekend

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As a seasoned analyst with over a decade of experience in the volatile world of finance, I have seen market swings that would make even the most stoic investor question their convictions. The recent Bitcoin price decline, taking us below the $56,000 mark and towards the dreaded “extreme fear” zone, is no exception.

The recent drop in Bitcoin‘s price has pushed the market into a ‘fear’ zone, momentarily dipping it below $56,000. According to BitMEX co-founder Arthur Hayes, there’s a possibility that Bitcoin could fall as low as $50,000 over the coming weekend, representing another potential 12% decline in its value.

On September 6th, the Crypto Fear & Greed Index, a tool that measures investor sentiment and ranges from 0 to 100, reached a low of 22. This score signals “extreme fear” among investors, which is the lowest it has been since August 8th when the index stood at 20. It’s important to note that this is the first time the index has fallen into the “extreme fear” zone since August 12th.

Over the last day, Bitcoin’s worth dropped by approximately 2.7%, dipping down to $55,838 and then slightly rebounding to $56,585. This drop resulted in a decrease of about $29.7 billion in Bitcoin’s total market capitalization, as reported by CoinMarketCap.

Arthur Hayes expressed his pessimistic viewpoint on cryptocurrency X, saying, “Bitcoin feels heavy to me, and I’m aiming for it to drop below $50k this weekend. I’ve made a daring short position. I hope people pray for my welfare, as I am taking a risky bet.” His forecast is made during increasing worries about the slowdown in the U.S. economy and disheartening employment figures, which have negatively affected market confidence.

Besides Bitcoin, other significant digital currencies such as Ether, Solana, and XRP experienced drops too – Ether dipped by 2.23%, Solana dropped by 2.82%, and XRP decreased by 2.19%. This market slump triggered approximately $94.26 million in liquidations, with $36.71 million from Bitcoin long positions and $17.36 million from Ethereum long positions.

The current decline in Bitcoin’s price is causing a shift towards “extreme fear” in the market, as some analysts anticipate a potential drop down to $50,000 by the end of this weekend. This change in sentiment underscores increasing apprehension and skepticism among investors.

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2024-09-06 08:53