BitMEX co-founder Arthur Hayes said that the decline in the cryptocurrency market and reaching the lowest levels, may be caused by bankrupt companies holdings of BTC.
Hayes, founder of the crypto exchange specializing in derivatives and permanent barter, confirmed that the crypto market is in its lowest stage, and this came within the framework of answering the question: Are the industry markets close to the bottom?
The decline in the price of digital currencies
According to Hayes’ explanation, he linked the past and present decline in the digital currency markets, especially during the past year, and attributed the increase in funds due to what the world witnessed from the passage of the Corona pandemic, which led to the prosperity of the cryptocurrency markets.
This period of success, the crypto expert added, led to free funds from the reserve assets of the country’s largest economy since the last world war.
Since this period, inflation has risen, so many companies have tried to maintain competitive lending rates, especially with the decline in digital currency prices. Inflation has also led to tightening monetary policies for the first time in forty years.
Reaching the bottom depends on BTC
In the same context, Hayes confirmed that the future is a wake-up call for bankruptcy because of what the largest stock exchanges and major central lenders witnessed, and he linked this to bankrupt companies that own holdings of currency. Bitcoin BTC.
He explained the problems facing central lenders. After requesting loans, these companies tend to sell Bitcoins (BTC) and Ethereum (ETH) to be able to pay off their debts. These companies begin to liquidate Bitcoins (BTC) first as reserve assets of cryptocurrencies, as they are the most liquid assets.
These companies only have illiquid altcoins left on their books, so Hayes believes there is a crypto asset resilience in the irresponsible institutions that have had to sell all their bitcoins.
An earlier prediction of a cryptographer
On the other hand, Hayes shared his views during the past weeks regarding the origin of Bitcoin, as the co-founder of the BitMEX exchange said that the largest crypto asset in the world will retreat to the $10,000 range when the Genesis exchange goes bankrupt.
The virtual entity, Genesys, had announced the suspension of its redemptions after abnormal withdrawal requests, as well as the FTX exchange and the collapse of Three Arrows Capital, causing a liquidity crisis.
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