The recent downward spiral of Bitcoin hasn’t dissuaded Arthur Hayes from his bullish prediction that Bitcoin will hit $50,000 by the end of the year. Hayes, the co-founder and CEO of Bitcoin Mercantile Exchange (BitMEX), said that volatility is not Bitcoin’s weakness but rather its strength, as it gives investors the chance to make money as its price changes. Bitcoin is only one positive announcement away from breaking its previous record high price and going on to hit $50,000, Hayes claimed, stating that the approval of ETFs by the SEC would be among the most important announcements that could change Bitcoin’s fortunes.
As Optimistic as Ever
In March, Hayes boldly predicted that Bitcoin would hit $50,000 by the end of the year. At the time, Bitcoin was trading at $9,400 but has since dropped to just over $6,500. This hasn’t fazed Hayes, whose BitMEX is one of the largest crypto trading platforms with a daily volume that exceeds $2 billion. The plummeting prices that have rocked the market this year are natural and expected, Hayes stated.
I think that something that goes up to $20,000 in one year can have a correction, down to about $6,000. I think we can definitely find the bottom in the $3000-5000 range.
Hayes cited the period between 2013 to 2015 when Bitcoin’s price dropped greatly before again picking up and hitting $20,000 in 2017. While back then the market took months to change significantly, that’s no longer the case. As the popularity of cryptos soars, more people are becoming interested in the industry, making market movements more frequent.
We’ve done these sorts of moves before. I think the timespan’s going to shorten because you have many more people involved in the market and who have invested capital and resources to be able to trade this asset class. And so now that we have more visibility, the time between an aggressive bear market and an aggressive bull market, I think it’s going to shorten.
Hayes is convinced that an SEC-approved ETF would be the most ideal catalyst for Bitcoin’s rise. Recent news such as the proclamation that Ether is not a security, while positive, was not enough to turn things around for cryptos. That’s because such announcements don’t attract any new money into the market; all they do is reassure Ether holders that they made the right decision. He also doesn’t believe that the recent price decline is majorly influenced by the situation in the Asian markets, as has been proposed by some analysts.
Hayes made the prediction on the same day that BitMEX co-founder Ben Delo was recognized as the UK’s youngest-ever self-made billionaire. Delo studied mathematics and computer science at Worcester College, and according to The Times, he has amassed over $3.6 billion from the Hong Kong-based Bitcoin trading and derivatives market platform. The 34-year-old developer lives in Hong Kong with his wife, and according to the report, he leads a very modest and economic lifestyle despite his vast riches. He even reportedly uses vouchers to buy food at McDonald’s and only owns three pairs of shoes.