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.
Early morning today Bitcoin and Ethereum fell with other altcoins falling sharply. This caused the global cryptocurrency market to fall below $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.
Sharing the technical chart mentioned below, he quoted
“On December 27, 2022, the Nasdaq 100 closed at a high of 16567.50 and then moved to a local low of 13046.64. Using the proven Fibonacci retracement, NDX failed to break through the 61.8% retracement on the rebound.A few days later, it tried to break that resistance level again, failed, and has been falling 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 the Nasdaq 100 falls, so does the crypto
Arthur Hayes is of the opinion that the Nasdaq 100 will undergo a correction in the crypto market due to a strong ripple effect. We have seen him say 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 further explains by saying that by the end of June 2022, Bitcoin will drop to $30,000 while Ethereum price could touch $2,500. However, he ends his opinion piece by saying: “It’s only a forecast and he reserves the right to be wrong”.
