BitMEX CEO Smashed Ethereum, Predicted ETH Price to Go Below $100
August 16, 2018
Head of the cryptocurrency exchange BitMEX Arthur Hayes, who is known for his sharp statements, remained true to himself and hammered the second most popular cryptocurrency in the world Ethereum. He predicted that the price of ETH would fall below $100.
Hayes expressed his opinion in the digest of the exchange for cryptocurrency traders. He called Ethereum a "shitcoin", whose price grew only because the popularity of initial coin offerings. Also, Hayes noted that most of the investment into Ethereum came from venture investors. He believes that they will eventually dump all their ERC20 tokens and ETH and cause the serious decrease of the price.
"The VC investor who has never suffered the vagaries of the market is as green as the noob who thinks he or she can go from 1 to 100 Bitcoin in a few trading days. They don’t have the mental strength to cut positions to limit further losses, or backup the truck and buy opportune dips even though they are down. More importantly, LPs can now see an objective last price for a particular token, and can’t be hoodwinked. They will attempt to be a Monday morning quarterback, and that only adds to the VC investors’ anxiety. At a certain point, they go "fuck it", and dump everything they can. It is this moment, that Ether goes from a 3-digit to a 2-digit shitcoin."
It should be noted that the price of ETH fell more than 4 times since the beginning of the year and 2 times in the past two months. The price of cryptocurrency even broke down the level of $250 a couple of days ago, but later corrected to $300.
However, Hayes believes that it's not the limit. He thinks that a fatal blow to the price of ETH would be made by venture investors, who tend to have a herd mentality. The head of BitMEX believes that they would start to sell cryptocurrency at the same time, since no one wants to have open positions on the falling market. Hayes predicts that the price would go to double-digit numbers. The price of ETH hasn't been double-digit since May 19, 2017.