As Bitcoin has effectively doubled since the $3,700 bottom put in on Mar. 12, the so-called “fear of missing out” has started to spread amongst BTC investors as optimists believe the cryptocurrency is poised to burst back into a full-blown bull market.
However, the CEO of BitMEX, Arthur Hayes, is signaling caution, suggesting that there’s a case to be made that the bottom falls out yet again. This comes after he wrote on the eve of the Mar. 12 crash that the Bitcoin market had not yet seen “maximum pain.”
Bitcoin could revisit $3,000 again, top investors fear
In the April edition of “Crypto Trader’s Digest,” the sporadic newsletter penned by Hayes and the BitMEX team, the former institutional trader-turned-crypto executive suggested that despite the recent performance, he could see Bitcoin retest $3,000, calling the chance this happens “absolutely [likely …] if the S&P 500 rolls over and tests 2,000.”
He attributed this thought to the fact that in a global bear market, the correlation between all assets approaches one.
He doubled-down on this in yet another thread published just a week later, writing that if we see another “sell everything” moment in the global markets, “Bitcoin will not be spared,” then “there are any number of lows in the $5000s, $4000s and $3000s that BTC could reach.”
Unfortunately, there are signs that equities are about to flip bearish after a strong recovery.
Scott Minerd — CIO of financial services firm and fund manager Guggenheim — wrote in a company note published last Sunday that he expects the coronavirus crisis to continue to hamper economic growth to a point where “the other shoe [will] drop,” causing the stock markets to tumble yet another 40 percent:
When the markets start to see some of the data on unemployment rising and economic growth and corporate earnings contracting,