Bitcoin Will Hit $10,000 By End Of 2019 – BitMEX CEO Arthur Hayesbr>
Arthur Hayes, co-founder and CEO of crypto trading platform BitMEX, said that while bitcoin is currently witnessing depressed volumes, volatility, and price, the most popular coin will get back to the $10,000 price point this year.
In a newsletter published last week, Hayes said that green shoots will begin to appear in early fourth quarter of 2019.
“The 2019 chop will be intense, but the markets will claw back to $10,000,” he said. “That is a very significant psychological barrier. It’s a nice round sexy number. $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.”
According to Hayes, monetary policy will play a huge role in bitcoin’s return to $10,000.
“But things are a changin’. The Fed couldn’t stomach a 20% correction in the SPX. In the recent Fed minutes, the dot plot now shows now rate increases for the rest of 2019,” he said. “The Fed will start reinvesting its runoff in the third quarter. We are only a hop, skip, and a jump away from an expanding Fed balance sheet.”
Hayes also said that “2019 will feature an IPO beauty pageant of some of the best cash destroying businesses. Uber, Lyft, AirBnB, and possibly the We company all are rumoured to IPO this year.” He believes that these will precede a boom in crypto markets.
“If these beauties can price at the top of the range, and trade above the IPO price, we know that party time is back,” he said. “Crypto will be the last asset class to feel the love. Too many people lost too much money, in too short a time period, to immediately Fomo back into the markets.”
Earlier this year, BitMEX published a research unveiling that the value of tokens that over a hundred of initial coin offering (ICO) teams have allocated to themselves has decreased by 54 percent from the initial figure of $24 billion, “due to coin price reductions.”