It’s Time To Buy, Says Arthur Hayes After The Crash

It’s time to buy according to Arthur Hayes, who stated that it is the optimal time to go shopping after the crash.

After reaching multi-month highs last weekend, Bitcoin and Ethereum fell by double-digit percentages this week. As a result, the market cap has dropped by more than $150 billion.

The Fear and Greed Index has reverted to fear, as predicted, but BitMEX co-founder Arthur Hayes feels this reversal might be an opportunity to stack up.

It’s Time To Buy

The former BitMEX CEO began his current Twitter thread on the price movements in the crypto market by asking his roughly 300,000 followers if they have a short-term or long-term plan for investing in digital assets.

If they are only here for the short term, the price movement is nasty.  In the contrary case, it might suggest they misread the market. According to Hayes, in this circumstance, investors have three options: “cover, sit tight, or add more.”

He believes that only individuals whose investing thesis has fundamentally altered should exit the market. Using Ethereum and the Merge as an example, he stated that if the long-awaited event is canceled for whatever reason, he will be concerned about his position.

Given that this is not the case, and the Merge is still expected to take place in the coming weeks, Hayes remains a believer in the second-largest blockchain protocol, suggesting that “it might be time to go shopping.”

5/
If you tell me the $ETH merge ain’t happening, or something occurred which severely diminishes it’s probability of success then I would be worried about my long position.

— Arthur Hayes (@CryptoHayes) August 19, 2022

Merge Will Rally Ethereum

Hayes appears to be fairly optimistic about the Merge, the event that will ultimately see Ethereum switch from the energy-intensive PoW to the more environmentally friendly PoS. In a recent blog post, the BitMEX co-founder stated that he believes there may be a sell-the-news moment, which means that the price may retrace in the near term but will ultimately be beneficial to long-term investors.

He compared the Merge to the Bitcoin halving, implying that ETH may soar in the same way that BTC has in the past.

“If the merge is successful… traders will buy ETH today, knowing that the higher the price goes, the more the network will be used and the more deflationary it will become, driving the price higher, causing the network to be used more, and so on and so forth,” he explained. “This is a virtuous circle for bulls.”