Former BitMEX CEO Arthur Hayes Expects More Forced Selling of Crypto PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Former BitMEX CEO Arthur Hayes Expects More Forced Selling of Crypto

Time Stamp: June 20, 2022 10:45 AM

Arthur Hayes

Former CEO of BitMEX crypto exchange Arthur Hayes has warned cryptocurrency investors that there might be more forced selling in the short term. Arthur Hayes Expecting More Forced Selling Referencing a popular quote from Warren Buffet, Hayes suggested that the market is trying to figure out who is swimming naked. Buffett’s explanation of that quote is that the outgoing tide usually exposes the risks and vulnerabilities of certain firms. This is particularly applicable to the current crypto market situation where leading players like Celsius and Three Arrows Capital (3AC) are displaying huge signs of weaknesses. If this trend continues, many other top industry players will likely follow the steps of celsius and 3AC. As noted by Hayes, Canada’s Purpose Bitcoin ETF liquidated 24,500 BTC on Friday, which represented roughly half of its total holdings. The fund had about 43,701 BTC as of June 1, 2022. Hayes added that that’s a lot of physical BTC to sell within a short period. 1/ BTCC – Purpose ETF puked 24,500 $BTC into the North American Friday close. I’m not sure how they execute redemptions but that’s a lot of physical BTC to sell in a small time frame. pic.twitter.com/BY7foKdPjY — Arthur Hayes (@CryptoHayes) June 19, 2022 Over the weekend, the Bitcoin price plummeted to $17,600, representing a 20 percent decline within a couple of hours. The $17,600 price represents its lowest since December 2020. However, Hayes claimed that the drop indicates that a forced seller triggered several stop-loss orders. However, Bitcoin bulls shouldn’t expect that Bitcoin is on a recovery path yet as according to Hayes there may still be more forced selling as some crypto lenders have poor risk management and over-extended lending terms. 3/ After the sellers dumped their bags, the mrkt quickly rallied on low volume. Given the poor state of risk mgmt by #cryptocurrency lenders and over generous lending terms, expect more pockets of forced selling of $BTC and $ETH as the mrkt figures out who is swimming naked. — Arthur Hayes (@CryptoHayes) June 19, 2022

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