BitMEX co-founder Arthur Hayes touched on the support levels that traders are watching in a flurry. He said that BTC investors taking long positions should be worried. The market analyst says that despite everything, an altcoin project will be a savior.
This altcoin will do better than BTC
In a new blog post, Hayes, who deserves to be “concerned” by Bitcoin bulls, stated that $ 17,500 is a critical level. This level, which the bulls should anxiously await, is the bottom of the current bear market. The former BitMEX CEO says that the Bitcoin price will depend on the dollar liquidity index. This metric tracks the amount of US dollars in the system through the size of the Fed’s balance sheet. According to Hayes:
While watching the fluctuations and impulses of the USD liquidity index, the Bitcoin level to worry about for a long time is $ 17,500. The most likely course of action is to retest this low. Whether it stays on the chart depends entirely on the course of the USD liquidity index.
Hayes underlines his news that will have negative effects for Bitcoin. One of them is the tendency of the US Treasury to lend more to finance the government. Hayes also claims that the Fed’s commitment to shrink its balance sheet drains liquidity from the system.
Bitcoin (BTC) is trading at $19,114.40 at the time of writing. It slightly recovered at a rate of 2.5% compared to the last 24 hours. Meanwhile, Ethereum (ETH) has outperformed BTC after underperforming in recent days. ETH is trading at $1,342.72, gaining around 4.5% compared to yesterday. Hayes says the leading altcoin will continue this trend.
Arthur Hayes says $10,000 is a tough prospect for Ethereum
Hayes later states that Ethereum will outperform Bitcoin. The crypto investor claims that if monetary tightening continues in the US, Ethereum is unlikely to reach a price of at least $10,000 as he predicted earlier this year:
However, I have little faith in ETH’s ability to reach Five Falling Digits by the end of the year if the Fed and Treasury continue their plans to reduce USD liquidity. I am confident that the structural reduction in the supply of ETH will definitely lead to a better performance against Bitcoin.
The circulating supply of Ethereum has dropped significantly since the merger. According to the data, the current supply of ETH has increased by only 5,000 since September 15. Annual inflation rate is 0.19%. The important thing about Ethereum, according to Hayes, is that it completes its transition to the PoS Blockchain. Due to being a greener cryptocurrency, ETH will outperform Bitcoin, according to the expert. Meanwhile, Hayes also predicts that corporate interest in Etehreum will peak.
