The former BitMEX CEO thinks the price of the virtual currency could have bottomed out after irresponsible entities ran out of money.
The former CEO of BitMEX thinks the worst may be over for the digital currency as the “most irresponsible entities” have run out of BTC to sell.
He said that most people who could go bankrupt have gone bankrupt.
Scott Melker was interviewed 11 times.
When CELs have financial troubles, they will often call in loans first, then sell BTC first because it is the most pristine asset and the most liquid.
“When you look at the balance sheet of any of the heroes, there’s nothing on it because they sold the Bitcoins before they went bankrupt.”
Similarly, Hayes made a similar argument in a Dec.10,In a blog post, explaining that although this “credit crunch is ongoing,” significant physical sales of BTC are taking place on exchanges from both CELs trying to avoid bankruptcy and trading firms that have had loans cancelled and must liquidate their positions, according to a 10 blog post.
“This is why the price of Bitcoin rises before CELs go bankrupt.
“That’s the big step,” he said.
“I can’t demonstrate that all Bitcoin held by these failed institutions was sold during the multiple crash, but it looks like they tried their best to liquidate the most liquid crypto collateral they could before they went under.”
Hayes believes the large-scale liquidations are coming to an end, saying in a blog post that “There is no reason why you would hold on if you had a pressing need for fiat.
After the collapse of FTX, the market is still deep in the grips of a crypto winter, but Hayes believes the market could see some recovery in the next few years.
He said that the US Treasury market will become “dysfunctional” at some point in the future due to the Fed’s monetary policies.
I think the Fed will turn the printer bank on, and then all risk assets will go up.
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