Although the price of bitcoin has reached $23,000, not everyone is optimistic.
The cryptocurrency industry is in a frenzy as a result of bitcoin’s recent surge above $23,000, its highest level in six months. Not everyone, though, is ecstatic about this promising trend. Former CEO of BitMEX Arthur Hayes is predicting a global crisis that may be disastrous for all cryptocurrencies, not just bitcoin.
A Bitcoin bull market is forthcoming?
The future of bitcoin is something that many in the crypto world are enthusiastic about, despite Hayes’ worries. The price of bitcoin increased sharply over the weekend, peaking around $23,400 and creating a gap on the bitcoin CME futures chart around $22,400. This gap, along with those at $17,000 and $20,000, has led analysts to speculate on the price of bitcoin’s future trajectory.
According to some analysts, bitcoin is about to start a new bull market and might soon hit $24,000, which is where the psychologically crucial 200-week moving average and the 161.8 percent Fibonacci level reside. However, before the subsequent rising trend starts, this surge can be followed by a period of stabilization.
Hayes thinks there will soon be a global financial collapse.
Hayes is certain that the worst is yet to come despite the optimistic forecast for bitcoin. He contends that the recent increase in bitcoin’s price is just a brief rebound from the lows of $16,000 and that a financial collapse is just around the corner.
Hayes thinks that the Federal Reserve’s enormous amounts of money creation will ultimately cause not just the collapse of the cryptocurrency market but also the collapse of all other assets, including equities. He contends that bitcoin and other cryptocurrencies will see a dramatic crash if the Fed does not take steps to lessen the consequences of this money production.
Despite these worries, Hayes is optimistic that the Fed would finally intervene to increase money printing and avert a total financial collapse. He contends that it makes little difference what level the market reaches during the downturn since eventually the Fed would take action to restore stability.
In 2023, will the Fed ease up?
There is growing consensus, according to market analyst Noelle Acheson, that the Fed will adopt a more accommodative stance in 2023 than it did in the previous 12 months. Despite assertions to the contrary, there is considerable ambiguity regarding the Fed’s plans for the upcoming year and how those actions would affect the financial markets.