The co-founder of BitMex believes that the market must be prepared to suffer even more. On his official Twitter account, Arthur Hayes did a prediction about potential levels of assets like Solana, Bitcoin, and Ethereum that will catch the attention of whales and long-term holders.
However, if cryptocurrencies reach the described threshold, investors’ unrealized losses would reach billions of dollars.
According to Arthur Hayes, fund managers who have been affected by the FTX situation will reduce the number of their trading venues and cause another liquidity crisis in the industry, which will be the main reason for another plunge.
—Arthur Hayes (@CryptoHayes) November 9, 2022
If the CPI data due on November 10 is once again surprisingly high, traditional financial markets will plunge into the red over the weekend, making this week one of the worst periods for the market in 2022.
After another liquidity crisis overtakes the market, we should see a return to extremely low values on most cryptocurrencies, which will attract investors. bottom catcher and institutional investors who are willing to average their existing positions or gain market exposure at two-year low prices.
Arthur Hayes expects BTC, ETH, and SOL to reach the following levels: $10,000-15,000 for bitcoin, $750-1,000 for ethereum, and $3 for solana. Reaching the aforementioned levels for Bitcoin and Ethereum may seem like an unrealistic negative outcome, while another drop for Solana is more than a possibility.
In a few hours, 60 million SOL coins will be released from staking and will most likely hit the market, causing unprecedented selling pressure that will most likely be the toughest test for Solana and its investors in the history of the project.