A few days ago, Ethereum World News reported that Arthur Hayes, CEO of Hong Kong-based BitMEX told Yahoo Finance that BTC lacks volatility and this could continue into 2019 (and even 2020).
Bitcoin (BTC) Price Today – BTC / USD
The crypto pundit spoke about his trading experience that certified his prediction. He alluded to the theory that the nuclear bear market of the digital currency in 2014, as well as 2015, may be repeated today.
Following the report from Yahoo Finance, Hayes and researchers under him showed further bearish sentiment, issuing the analysis of the cryptocurrency market in BitMEX’s recent edition of “Crypto Trader Digest.”
Bear market blues
The analysis of the report on BTC’s analysis segment was titled Bear Market Blues, and it explained that humans are terrible forecasters. It added that the monumental run-up in BTC price of last year, which pushed the digital currency to $20,000 from $900, would not be replicated until next year.
Hayes added that the crypto markets, as well as all other markets, would undergo reversal phases. This accentuates the belief that BTC is not ready to bottom or move higher yet. He cited BitMEX research’s analysis of the historical performance of Bitcoin. Hayes noted that the current bear trend of the crypto market began in March this year when BTC price dropped under its 200-day moving average, may last into next year.
Volatility of the cryptocurrency
Hayes spoke about the volatility of the cryptocurrency which has been the subject of debates in the market today. He noted that the choppiness of BTC’s sideways market would consume traders. Speaking against the common sentiment, the executive explained that BTC needs to be volatile to regain a spot in the mainstream.
He noted that the cryptocurrency’s price is the most transparent and best way to express the performance and health of the entire crypto ecosystem.
This claim is not entirely new because for a few months, mainstream financial media outlets such as Bloomberg, CNBC and Forbes are now scaling back on their coverage of the cryptocurrencies.
As the members of the public are active participants in the affairs of media outlets, it should not be surprising that BTC’s failing value has correlated with the decline in MSM reports.
Hayes referenced this unfortunate event saying,
“The Bitcoin price volatility is the gateway drug into the ecosystem. The media writes about things that move; therefore no movement, no coverage. The diehard traders and engineers will always hear about a new asset class or technology in advance of popular media outlet coverage. However, their efforts will only be amplified if many more people discover El Dorado. That requires the lazy mainstream financial press to write”
The trader turned executive added that if the volatility of BTC continues on the downward trend, the prices will leak slower and reach $2,000. He calls this “his new sweet spot.”