Back in July, Bitcoin was trading at about $7,500, and the price was still climbing. Arthur Hayes, the co-founder, and CEO of crypto exchange BitMEX predicted that Bitcoin could continue to drop.
He said that a potential bottom could be $5,000 before the market hits an aggressive rally that could propel Bitcoin to a new all-time high of $50,000 by the end of 2018.
Hayes is a former equity derivatives trader and market-maker for Deutsche Bank and Citibank’s Exchange Traded Funds (ETF). He co-founded Hong Kong-based BitMEX in 2014.
Bitcoin and the whole crypto market are searching for adoption and important developments to solve security issues and scalability problems as well, Hayes made his assessment based on market behavior.
The markets could heat up when summer ends
In a July interview with CNBC, he explained why he believes the summer months and a financial world of globe-trotting vacationers are at play. He expects that the markets will heat up in Q3 and Q4.
BitMEX co-founder Ben Delo is also Britain’s first crypto billionaire, and he believes that Bitcoin’s volatility is what allows it to soar.
Delo agrees with Hayes’s prediction, and as a result, he stated that the high of $50,000 is predicated on an SEC-approved Bitcoin ETF.
“I think something that goes up to $20,000 in one year can have a correction down to around $6000 … we can find a bottom in the $3000 to $5000 range, but we are one positive regulatory decision away – maybe an ETF approved by the SEC – to climbing through $20,000 and even to $50,000 by the end of 2018.”
The SEC still has to approve a Bitcoin ETF. It seems that the agency continues to delay its decision on the most recently rejected proposal from VanEck/SolidX by taking another extension.
The agency says, however, that it will make a decision on September 30 so we have to wait a bit more until we find out something new.