Bitcoin could drop to $30,000 by the month of June

The co-founder of crypto exchange BitMEX, Arthur Hayes informed that because of the strong correlation between Bitcoin with large-cap technology stocks, Bitcoin could witness a significant decline as that sector comes under renewed pressure from rising interest rates and other factors. He, in a blog post further told that he estimates tech stocks being dragged lower by rising nominal interest rates and a deteriorating economy.

He further went on to present charts indicating the tight relationship between bitcoin and the Nasdaq-100 index over a 10-day, 30-day, and 90-day period and pointed out the "high" short-term, or 10-day, correlation. He in the post wrote: "For me to hoist the flag in support of selling fiat and buying crypto in advance of an NDX meltdown (30% to 50% drawdown), correlations across all time frames need to trend demonstratively lower. As long as the 10-day correlation stays high, we must stay defensive on our crypto positioning." He said bitcoin could test the $30,000 level by the end of the second quarter in June of this year. Bitcoin on Monday traded at around $41,100.