Former BitMEX CEO Takes Position Against Bitcoin, Predicts Price Drop Below $40K, Abandons Solana

BitMEX’s former CEO, Arthur Hayes, has made a strategic move in the market by purchasing put options with a strike price of $35,000. Hayes anticipates a 10-15% decline in Bitcoin’s price, aiming to push the cryptocurrency below the crucial $40,000 support level. He openly shared details of this move in a recent tweet, where he expressed his belief that Bitcoin will drop below $40,000 due to the upcoming US Treasury quarterly refunding announcement. Hayes is concerned about potential indications of high interest rates, which could deter crypto investors and contribute to the anticipated decline in Bitcoin prices.

In addition to his put options, Hayes has decided to liquidate his trading positions in Solana and Bonk, resulting in small losses. This move suggests a broader market uncertainty that Hayes is navigating.

Crypto analyst Ali Martinez has also analyzed Bitcoin’s historical price behavior and identified a pattern where the cryptocurrency tends to retreat to around half of its previous significant increases. Martinez suggests that Bitcoin could potentially drop to $32,700, reflecting patterns seen in previous market cycles. However, despite the current dip, Martinez remains optimistic about Bitcoin’s long-term upward trend. He sees this decrease as a temporary setback before Bitcoin resumes its trajectory.

As of now, Bitcoin’s price stands at $39,921, indicating a 3.6% drop in the last 24 hours and a 7% decrease in the last seven days.