The co-founder of crypto exchange platform BitMEX predicts that Bitcoin (BTC) and Ethereum (ETH) will continue to fall in price following the collapse of Terra (LUNA) this week.
In a new blog post, Arthur Hayes says he’s preparing to accumulate both crypto assets as he anticipates a drop to major cyclical lows.
According to Hayes, he will buy BTC for $20,000 and ETH for $1,300.
“These levels roughly correspond to the all-time highs for each asset during the 2017-18 bull market.”
Bitcoin is trading at $29,878 at the time of writing. Ethereum is trading at $2,049.
Hayes says crypto capital markets need to determine who is overexposed to anything related to Terra.
“Any service that offers above-average yields and is believed to be subject to this melodrama will experience rapid drains.
And since most people have never read how any of these protocols actually work in emergency situations, it will be an exercise to sell first, read later. This will continue to weigh on all crypto assets as all investors lose confidence and would rather suck their thumbs, clutch their security blanket and hold fiat cash.
Crypto capital markets must be given time to recover once the bloodshed is complete.”
Terra, the decentralized financial payments ecosystem, collapsed earlier this week, losing all of its value.
However, Hayes says he hasn’t made any changes to his structurally long crypto positions even though they are declining in value.
“If anything, I’m evaluating the various altcoins I own and increasing exposure.”
In March, Hayes and BitMEX co-founders Benjamin Delo and Samuel Reed pleaded guilty to violating a law that requires financial institutions to help the government detect and combat money laundering schemes.
The US Department of Justice (DOJ) alleged that the trio willfully failed to comply with anti-money laundering protocols and profited from US-based customers’ transactions while operating outside the country.
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