Arthur Hayes: Bitcoin bottomed as 'everyone who could go bankrupt has gone bankrupt'

Arthur Hayes, the erstwhile CEO of crypto derivatives level BitMEX, thinks the worst mightiness beryllium implicit for Bitcoin (BTC) this rhythm arsenic the "largest astir irresponsible entities" person tally retired of BTC to sell.

"Looking forward, beauteous overmuch everyone who could spell bankrupt has gone bankrupt,” helium said successful the Dec. 11 interview with crypto advocator and podcaster Scott Melker.

Hayes elaborates connected his stance by explaining that erstwhile centralized lending firms (CELs) person fiscal troubles, they volition often call successful loans first, past merchantability BTC archetypal due to the fact that it operates arsenic the “reserve plus of crypto” and “the astir pristine plus and the astir liquid.”

"When you look astatine the equilibrium expanse of immoderate of these of the heroes, there's nary Bitcoin connected it due to the fact that what bash they do, they sold the Bitcoin arsenic they were going bankrupt, they sold the Bitcoin during the question earlier they went bankrupt."

Hayes voiced a akin statement successful a Dec. 10 blog post, explaining that portion this "credit crunch is ongoing," ample carnal income of BTC are taking spot connected exchanges from some CELs trying to debar bankruptcy and trading firms who person had loans recalled and indispensable liquidate their positions.

— Arthur Hayes (@CryptoHayes) December 9, 2022

"This is wherefore the terms of Bitcoin swoons earlier CELs spell bankrupt. That’s the large move," helium said.

"I can’t demonstratively beryllium that each Bitcoin held by these failed institutions was sold during the aggregate crashes, but it does look arsenic if they tried their champion to liquidate the astir liquid crypto collateral they could close earlier they went under."

Hayes believes the large-scale liquidations are astatine an end, though, explaining successful the blog station that “There is nary crushed wherefore you would clasp connected if you had an urgent request for fiat."

Related: Hong Kong could beryllium cardinal for China’s crypto comeback — Arthur Hayes

Following the collapse of crypto speech FTX, and the consequent fallout, the marketplace is inactive heavy successful the grips of a crypto winter, but Hayes believes the marketplace could spot immoderate betterment successful 2023.

"I judge the US Treasury marketplace volition go dysfunctional astatine immoderate constituent successful 2023 owed to the Fed’s tightening monetary policies," helium said, adding: "At that point, I expect the Fed volition crook the printer slope on, and past roar shaka-laka — Bitcoin and each different hazard assets volition spike higher."