Bitcoin Could Drop to $30,000 by June, Says Arthur Hayes

The co-founder of crypto exchange BitMEX Arthur Hayes has said that Bitcoin has been tightly correlated with large capital technology stocks making the cryptocurrency vulnerable to a  big decline as that sector comes under renewed pressure from rising interest rates and other factors.

Hayes said in a blog post on Monday that he expects tech stocks to fall due to rising nominal interest rates, deteriorating global liquidity and slowing economic growth. 

The Federal Reserve is raising interest rates to curb high inflation while curtailing quantitative easing. This is a measure aimed at putting more pressure on tech stocks. The Nasdaq-100 has recovered from a 20% plunge that showed a slip into the bear market last month but has fallen nearly 14% this year so far.

Hayes also said that the Fed is not planning to grow its balance sheet again any time soon, meaning equities are not going any higher. Meanwhile, global growth will be hurt by higher commodity prices driven by the ongoing and possible escalation of Russia’s war against Ukraine. 

Arthur Hayes and BitMEX co-founder Benjamin Delo pleaded guilty to failing to establish an anti-money laundering program at BitMEX in February. Hayes and Dero each paid a fine of $ 10 million.