The former chief executive of BitMEX, Arthur Hayes has stated that he expects the price of Ethereum to go as high as $10,000 by the end of 2022. Since the beginning of this year, ETH has seen its value decline significantly, but the CEO said that the coming months could see a bullish trend forming. He further said that the crypto market had currently declined enough to hit rock bottom, which showed that there was a major possibility of the market climbing back up once more in the next few months. The former executive of the renowned crypto derivatives platform stated that there would be a continuous increase in interest rates by the Federal Reserve in the third quarter.
He stated that this constant tightening of the monetary policy was likely to cause the crypto market dip even more. Hayes said that the current condition of the market was due to the fiasco of the TerraUSDstablecoin. The trading environment had become extremely risky and this had also resulted in the crash of the LUNA token. This had resulted in a liquidity crisis, which caused the stablecoin to lose its entire value altogether. He analyzed that the reason the stablecoin had come down was because people had decided to swap out their tokens for other stablecoins and fiat currencies.
He said that this had only made things worse and the LUNA token had also collapsed because more tokens were still being minted by the Terra team. The crypto expert said thattightening of liquidity by global central banks had indirectly led to the collapse of the TerraUSDstablecoin. He said that this event had led to problems that wouldn’t have occurred for a few months because the Federal Reserve and other central banks had continued to tighten their monetary policy. He also noted that it was inevitable that the stablecoin would collapse. The process has just sped up because of the increasing interest rates.
The way the stablecoin had been programmed would have eventually led to its collapse. Hayes also said that since the market was at the bottom of the cycle for now, people should not expect the prices to go up quickly. He added that the market would remain rather unstable in the short run and the only way the market would make a comeback was when the Federal Reserve was going to hit pause on its aggressive monetary policy tightening.
He stated that when the market remains unstable and prices are choppy, it would only erode the self-confidence of the traders and reiterate the belief that the market has hit its bottom. Therefore, the macroeconomic picture and the geopolitical conditions need to calm down first before the crypto market will see some change. Once that happens, the market will be able to make a comeback once again. He believes this will happen before the year is out, thereby allowing Ethereum to reach a price of $10,000 and other cryptocurrencies to also experience similar increases in their value.
