Bitcoin and Ethereum quotes have already reached the bottom of the current cycle, however, a market trend reversal should be expected when Fed will stop raising the key rate. This was stated by the co-founder of the BitMEX cryptocurrency derivatives exchange Arthur Hayes.
What do big macs, the feds, and #crypto have in common?https://t.co/C0msDGFsDB pic.twitter.com/E8hnPyOtLH
— Arthur Hayes (@CryptoHayes) June 1, 2022
Hayes emphasized that inflation has a devastating effect not only on crypto companies, but also on players in the technology sector – it forces venture investors to reduce their balance sheets.
The ex-CEO of BitMEX drew attention to the fact that amid the collapse of the crypto market, the correlation between digital assets and the Nasdaq 100 index was broken. He also noted that for Bitcoin and Ethereum, each drawdown of the new cycle is still higher than the historical maximum of the previous one.
“There may be an exchange trading at a higher or lower intraday level than what we are seeing. The point is to be generally accurate and to approximate a range that can be considered a local bottom. For bitcoin, this is $25,000-$27,000. For ether, from $1,700 to $1,800,” wrote Hayes.
In mid-May, digital gold quotes failed the $27,000 level, Ethereum tested $1,800. In the same month, the first cryptocurrency recorded a record nine-week decline streak.
At the time of writing, Bitcoin is trading near $29,940, while Ethereum is trading near $1,820.
Recall, according to JPMorgan analysts, the fair price of bitcoin is at $38,000.
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