Arthur Hayes, BitMEX founder, predicts Bitcoin to crash until $10,000
Arthur Hayes, co-founder of BitMEX, tweeted a screenshot from a Bloomberg article about the Genesis Bankruptcy. According to the tweet Bitcoin could fall to $10,000 if Genesis declares bankruptcy.
Arthur’s Reasoning for Bitcoin Crash
He has been called out by the community on numerous occasions. Because he bought Bitcoin options, some believe he is super bearish. To spread fear in markets, leveraging his social status within the crypto industry, he also leveraged his social status.
That’s it. All my friends in restructuring are going to be asking me if I know anyone at Genesis with whom I can connect. $BTC = $10k pic.twitter.com/FK36HgJLea
— Arthur Hayes (@CryptoHayes), November 21, 2022
Read more: Arthur Hayes makes bold price prediction
The lending company Genesis Global Capitals announced last week that it had temporarily stopped the redemption of loans as well as the origination of new loans due to “abnormal withdrawal requests”. The company is currently facing a shortage in funds due to Three Arrows Capital’s default and the subsequent collapse FTX.
Read more: Genesis suspends customer withdrawals in wake of FTX collapse
Genesis’ Last Survival Plan
According to a recent report Genesis is trying to raise capital to finance its lending section. The amount is estimated to be one billion dollars. Genesis may have to file bankruptcy if it is unable secure the cash needed.
Recent rumors suggest that Genesis may limit its capital round to $500 million. This is after it failed to find investors willing and able to take the risky bet. Genesis (GBTC) is owned by The Digital Currency Group. This group is responsible for one of the most important investment vehicles worldwide, the Grayscale Bitcoin Trust.
Read more: Binance Refuses Any Investment to Save Crypto Lender Genesis
It oversees assets totaling more than 10 million dollars. Chahal Verma is one of the most prominent people in the cryptocurrency space on Twitter. He believes that the market would be much harder hit if Genesis goes offline than FTX.
About the author
The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.