Bitcoin price crashes towards $53,000, but Arthur Hayes expects it to fall further

The price of Bitcoin collapsed below $53,000 on Friday, hitting its lowest level since “Black Monday” following macroeconomic changes in early August.

The collapse seems to have completely corroborated the prediction of BitMEX co-founder Arthur Hayes, who believes that there could be more pain for cryptocurrency holders.

Bitcoin traded at $56,925 at 13:25 UTC, before collapsing to $52,871 at 20:55 UTC. It is listed for $53,500 at the time of writing. On Thursday, Hayes predicted that Bitcoin could plummet further over the next two days.
“BTC is heavy, I’m looking for under $50k this weekend,” he tweeted. “I took a saucy short. Pray for my soul, for I am a degen.” In early August, Bitcoin briefly dipped below $50,000 after the Bank of Japan raised interest rates for the first time in more than a decade. However, Bitcoin and the broader market quickly recovered as the BOJ vowed not to raise rates further while threatening market stability. However, Bitcoin and stocks are back down as poor economic data from the US this week continues to point to an impending recession. On Tuesday, Hayes already warned that Bitcoin could “slowly seep toward $50,000,” blaming increased deposits in the Fed’s Reverse Repo Program (RRP) for pulling money out of the broader market. In his essay, he stressed that his bearishness is “temporary” and will likely only last until the end of the month before the Federal Reserve and the US Treasury inject more liquidity into the economy. “I expect the intervention to begin at the end of September,” he said. “Between now and then, Bitcoin will, at best, continue to chop, and altcoins could go deeper into the channel.” SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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