The BitMEX co-founder said he was bullish on ETH due to a significant change the upgrade to Proof-of-Stake, dubbed The Merge, is expected to bring to the network during an interview on Bankless Wednesday.
Hayes claimed that the post-Merge emission reduction for ETH could act as a catalyst for price momentum, even going so far as to claim that the crypto was “stronger” than the current macro environment, which has caused a months-long decline in the value of cryptos and other asset classes due to the Federal Reserve raising interest rates to fight inflation.
Daily ETH production is expected to drop from around 13,000 ETH to 1,600 ETH after the Merge. According to Hayes, market appetite for Ethereum and this sharp drop in supply should support future growth of ETH.
Hayes has gained notoriety this year for his positive views on ETH. On multiple occasions, he issued bold price predictions for the asset on his Medium blog, speculating that it could reach $10,000 in 2022.
Hayes said on Bankless that he bought ETH call options with a strike price of $3,000 and he considers $3,000 a relevant target for 2022.
A drop in Ethereum after the Merge?
Paradoxically, Hayes said he was a little skeptical about the upgrade rolling out, as Vitalik Buterin has been talking about it for 5 or 6 years. Due to the market downturn and the bankruptcy of some crypto companies, investors are less enthusiastic.
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Thus, according to him, the Merge event could be a sell-off by knocking ETH down by around 20%, before the recovery to the upside.