The Co-Founder and CEO of BitMEX, Arthur Hayes, says Bitcoin will hit USD 50,000 by the end of the year after possibly bottoming out in the USD 3,000 to USD 5,000 range. He says Bitcoin is just one positive regulatory decision away from a massive rally. That piece of positive news might be a Bitcoin exchange-traded fund (ETF) being approved by the Securities and Exchange Commission (SEC).
Arthur Hayes says a Bitcoin ETF would allow ‘real’ money to enter the Bitcoin market since institutional investors will be able to easily invest in Bitcoin on mainstream stock trading platforms, as opposed to the present day where buying Bitcoin is a completely different process than buying stocks. Cryptocurrency expert Michael Strutton has a similar forecast, saying that when the first Bitcoin ETF is approved by the SEC Bitcoin’s price will hit USD 35,000.
BitMEX is technically the largest Bitcoin exchange in the world with USD 618 billion of trading volume in the last year, and 3 times more liquidity than any other exchange. However BitMEX offers derivatives contracts that represent Bitcoin rather than trading Bitcoin itself, so BitMEX is usually not counted as the top cryptocurrency exchange since they aren’t trading actual bitcoins.
Arthur Hayes says BitMEX’s volume has tripled during the Bitcoin price decline in 2018. BitMEX offers clients up to 100X leverage, facilitating short selling, so BitMEX clients actually make more money when the market is declining. It is possible that the large and persistent amount of short selling on BitMEX could be a contributing factor to Bitcoin’s price decline.
Also, contrary to popular opinion, Arthur Hayes favors volatility, and he says the decrease in volatility as Bitcoin’s price has declined is bad for business. This is probably because BitMEX’s leveraged trading feeds on volatility. In general, it is recognized that less price volatility makes Bitcoin a better currency.
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