Ethereum holders might be on a hot seat for an imminent market bottom, but Arthur Hayes – BitMex CEO – has labeled the second-largest crypto by market value a “double-digit shitcoin” predestined for sub-$100 ranks.
Making the vibrant description in Crypto Trader Digest (BitMex’s news bulletin), Hayes used his classically unrestrained voice to debate why Ether’s success in 2017 might not have been sustainable.
The newsletter comes in the middle of a market-wide selloff; however, Hayes would appear to weigh trustworthiness over calming the worries of BitMex customers.
Ethereum is about to return to Sept 2017 prices and is currently 80% down from its all-time high in Jan 2018.
VCs To Blame
To Hayes, the feverous wave of 2017’s ICO artificially raised up the value of Ether.
Pointing the finger at “envious” venture entrepreneurs, he stressed how their support, and even adaptation, of known “shitcoin” projects, might have prepared Ether for an ultimate collapse.
Later, Hayes tried to explain how contentious “pump-and-dump” systems are the direct result of immature hedge fund associates. He also further stated that they are not mentally equipped to deal with the fact that their investments are in the red, thus causing them to liquidate assets in an immature manner. He surmised, “They do not have the psychological strength to cut positions in order to limit more losses, or take a step back and purchase opportune dips even though they’re down. The entire token VC clients are going to want to sell at the same time. If you do not sell, and the market keeps falling, you will lose your job. So at the end of the day, everybody sells simultaneously.”
While Hayes might believe Ethereum’s triumph will be short-term, he, however, confessed to not knowing the day or time the bubble would burst.
However, he did remain resolute on his prediction that BTC will hit rock bottom somewhere around $5,000, as the price for mining no longer becomes profitable for “the regular miner.”