It’s known. A loss of selling strength in bitcoin (BTC) is expected to lead to either market stabilization or a bullish rally. For billionaire Arthur Hayes, everything suggests that sellers are running out of steam.
Soon a rise in the price of bitcoin (BTC)?
It is possible that bitcoin (BTC) has already bottomed since it began its slide. This is what the founder of BitMEX, Arthur Hayes, believes in a blog post, published on December 9. To explain his point of view, the billionaire claimed that three key players have no more bitcoins to sell. These are the centralized lending and trading companies, bitcoin miners, and ordinary speculators. They had to part with their bitcoins (BTC) this year due to the misuse of leverage.
Arthur Hayes indicates that they probably sold most of their BTC after the collapse of 3AC and Alameda Research.
“When these two companies had problems, what did we see? Large transfers of the most liquid cryptos to centralized and decentralized exchanges, which were then sold off. This happened during the big down move. I cannot demonstratively prove that all of the bitcoins held by these failed institutions were sold off during the multiple crashes. But it looks like they liquidated the most liquid crypto they could just before going bankrupt.”does he have writing.
In his talk, Arthur Hayes argues that only illiquid shitcoins are left for lending and trading companies. As for the miners, he indicates that they have been selling their bitcoins (BTC) at a discount since last June. As for ordinary speculators, Hayes says he looks at the amount of open interest (OI) on long and short contracts to gauge their level of speculation in the markets. According to him, the all-time high of OI coincided with the all-time high of bitcoin (BTC). The OI also dipped when the market fell. “This suggests that speculators are broke”he said.
For Arthur Hayes, the bearish trend of bitcoin (BTC) is gradually coming to an end. This, because the big players in the price drop of the flagship crypto have no more to liquidate. “What goes down will come up”he said in his blog post.
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