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Bitcoin’s may slump to $30,000? Yes | Trading Cocktail

Bitcoin’s may slump to $30,000? Yes

Bitcoin’s may slump to $30,000? Yes. Bitcoin’s tendency to move in tandem with technology stocks means the biggest cryptocurrency may slump to $30,000 by June, according to Arthur Hayes, the co-founder of crypto trading platform BitMEX.

“Our inability to recognise the cyclical nature of all markets leads us to ignore inconvenient truths about the assets we wish into the stratosphere. The inconvenient truth that haunts crypto at this current juncture is that crypto moves in lockstep with the debt-based, un-free risk asset markets like global developed market equities. This is despite all the hard work of Lord Satoshi’s loyal supplicants, who are fighting to create a counter-narrative grounded in technological truth.”





Arthur Hayes on his blog post

 

Bitcoin’s may slump to $30,000? Yes | Trading Cocktail
Back to the extreme fear on fear and greed index

 

The 90-day correlation between Bitcoin and the Nasdaq 100 is at an all-time high, eroding the token’s appeal as a diversification tool. According to Hayes, the combination of slowing global growth and less accommodative central banks will weigh on tech stocks and, by implication, crypto. He admitted that his Bitcoin and Ether projections are mostly based on a “gut feeling.”

Bitcoin’s may slump to $30,000? Yes | Trading Cocktail
The 90-day correlation between Bitcoin and the Nasdaq 100 is at an all-time high

 

Just as we’ve tried to describe this in our previous post, our opinion on bitcoin as an overvalued risk asset and 20k as the price goal for short selling is still consistent.

ASSET CLASSES SYNCHRONISED SWIMMING TEAM

As there’s no other strong reason to think otherwise. We dont need to post another prediction as we have published it previously. Our last update on bitcoin prediction here:

Bitcoin Prediction 2022 Update | The Withdrawal Symptom — March 2022 Update

 

Meanwhile, Ether, Cardano, Avalanche, Luna outstrip Bitcoin losses. Concerns about a tightening of monetary policy have taken a toll on the value of Bitcoin and other cryptocurrencies since their peak in late March. That trend was unabated by the excitement generated by the Bitcoin 2022 conference, which took place just last week in Miami. After a rough week for American markets, the decline in Bitcoin’s value is less surprising. Given the cryptocurrency’s tendency to move in lockstep with assets like US tech companies. Back at record levels, its correlation with the Nasdaq 100 Index. Bitcoin’s may slump to $30,000? Yes, according to our opinion.

 

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