Former Bitmex Chief Predicts 30% BTC Correction — Warns Spot Bitcoin ETFs Could Make It Worse

Former Bitmex CEO's Bitcoin Price Forecast

Former CEO of Bitmex, Arthur Hayes, has recently shared his predictions for a potential correction in the bitcoin market. In a Medium post, Hayes stated that he expects a 30% to 40% correction due to a dollar liquidity rug pull. He also warned that the introduction of spot bitcoin exchange-traded funds (ETFs) could make the situation even worse.

The Impact of Spot Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) is expected to approve multiple spot bitcoin ETFs in the coming week. Hayes highlighted the potential impact of these ETFs on the price of bitcoin. He explained that if the anticipation of fiat flowing into these ETFs drives bitcoin above $60,000, there could be a significant correction of 30% to 40% due to a dollar liquidity rug pull.

Three Variables Colliding in March

Hayes outlined three variables that he believes will collide in March. The first variable is the Fed's Reverse Repurchase Operations (RRPs), which he expects to reach $200 billion early in the month. Hayes emphasized that there needs to be another source of dollar liquidity to sustain the market's momentum.

The second variable involves the banks needing cash to swap with U.S. Treasuries and other eligible bonds repo'd with the Fed on March 12. Lastly, Hayes mentioned the possibility of the Fed initiating its first rate cut since 2021 at the Federal Open Market Committee meeting on March 20.

Hayes' Crypto Portfolio and Conclusion

Hayes shared that his crypto portfolio consists mainly of bitcoin and ether, which represent approximately 70% of his holdings. He explained that due to the poor liquidity of derivatives on other cryptocurrencies, he relies on bitcoin derivatives for a liquid macro crypto hedge.

In conclusion, Hayes expects the market to start correcting around March 12th if his forecasts are accurate. The introduction of spot bitcoin ETFs and the variables colliding in March could potentially lead to a significant correction in the bitcoin market.

What are your thoughts on Arthur Hayes' predictions? Let us know in the comments section below.

How To

The best way to buy gold (or silver) online

You must first understand the workings of gold before you can purchase it. Precious metals like gold are similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.

There are two types currently available: legal tender and bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.

Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.

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Another way to purchase gold is to ask another person to do it. Selling gold is easy too. It is easy to sell gold by contacting a company like You can create a simple account immediately and begin receiving payments.


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