Arthur Hayes, the founder and former CEO of BitMEX, who attracted attention with his blog posts, made a very controversial comment. “Altcoins could drop 90 percent,” Hayes said. made a prediction. He claimed that if this decline caused by the Fed deepens, altcoins will lose their value by 90%.
An arrest warrant was issued for Arthur Hayes and his colleagues due to the problems of the derivatives exchange BitMEX with the US Department of Justice. Hayes, who later surrendered to the United States, was released on a $10 million bail.
Commenting on his blog, Hayes said that investors should always keep their portfolios ready for a drop similar to the coronavirus pandemic collapse in 2020.
“I don't speak for people who keep their Bitcoin without trading 24/7. Other investors should always be prepared for periods like the March crash and have a portfolio ready to move around during such times. What needs to be done is not calculating how much has been earned by the end of the year, but over time. "The key is to make your performance flexible. Responses at such times both prevent loss and contribute to the uptrend after the loss. Those who turned the decline in March 2020 into an opportunity have made much more profit than those who have invested since January 1."
Stating that he looks at the profits and losses in the crypto portfolio in Bitcoin and Ethereum parity, Hayes stated that these two cryptocurrencies are the best quality products, so in case of a decline, he will sell his altcoins and return to these two coins.
“If I believe that Bitcoin will drop below $30,000 and Ethereum below $2,000, I will sell all the 'sh*t coins' I have. Because in that case, these 'sh*t coins' will fall between 75 and 90 percent. In this way, I will seriously prevent the shrinkage in my portfolio."
The former CEO of BitMEX said that the Fed's moves were also very important in this process and that he thinks Bitcoin will fall further if the institution insists on stopping its bond buying.
"If the M2 supply reaches 0% and goes negative as well, the price of Bitcoin will naturally fall as well. If the Fed insists on stopping bond buying, the 'money printing narrative' will end."