Yet again the cryptocurrency market has opened this week on a bearish note. Since the start of 2022, the crypto market has been volatile and the March rally and the crash that the crypto market is experiencing in the past few weeks, have put the market under pressure.
In the early hours, today Bitcoin and Ethereum dropped along with other altcoins that had a sharp fall. This resulted in the global cryptocurrency market sliding down under $2 trillion.
The Worst Is Yet To Come!
Arthur Hayes, BitMEX CEO, in his latest predictions, mentions ‘The Q-Trap’ where he talks about the changing global macro-economic trend. Moving further, he explains how the Nasdaq 100 (NDX) index and how this is closely related to the Bitcoin and crypto market.
As he shared the technical chart mentioned below, he quoted
“On 27 December 2022, the Nasdaq 100 closed at a high of 16567.50 and then subsequently hit a local low of 13046.64. Using the tried and tested Fibonacci Retracement, NDX failed to break through the 61.8% retracement on the bounce. A few days later it attempted to break that resistance level again, failed, and has continued lower ever since.”
Meanwhile, Arthur Hayes claims that as the Fed and other central banks have to face inflation, he doesn’t expect them to move from quantitative tightening anytime soon.
If Nasdaq 100 Falls, So Does The Crypto
Arthur Hayes is of the opinion that Nasdaq 100 will undergo correction over to the crypto market due to a strong ripple effect. He was seen asserting that
“Bitcoin and Ether are highly correlated to the Nasdaq 100. If the NDX tanks, it will take crypto down with it. I am buying crash June 2022 puts on both Bitcoin and Ether.”
Hayes explains further saying, by the end of June 2022, Bitcoin will drop to $30,000 while Ethereum Price might touch down to $2,500. However, he ends his opinion piece by saying, “this is just prognosis and he reserves the right to be wrong”.