Former CEO of BitMEX Places Pessimistic Wager on Bitcoin, Foresees a Decline Below $40k

BitMEX CEO Arthur Hayes has strategically entered the market by acquiring put options with a strike price set at $35,000. In a tweet, Hayes publicly disclosed his move, revealing that these financial contracts give him the right to sell Bitcoin at the predetermined price before March 29th, 2024.

Hayes believes that there is a potential for a 10-15% decline in the cryptocurrency’s price, which could drive it below the crucial $40,000 support level. If Bitcoin breaks below $40,000, Hayes can exercise the put options and profit from the price difference.

One factor that Hayes points to as potentially influencing Bitcoin’s value is the upcoming US Treasury quarterly refunding announcement, expected by January 31st. He expresses concern that if the Treasury indicates high interest rates, it could deter crypto investors and contribute to the anticipated decline in Bitcoin prices.

Additionally, Hayes has made a strategic decision to liquidate his trading positions in Solana and Bonk, resulting in a marginal loss.

Crypto analyst Ali Martinez has also revealed historical trends in Bitcoin’s price behavior. Martinez notes that Bitcoin tends to retreat to around half of its previous significant increases. Currently, he suggests that Bitcoin could potentially drop to $32,700, following a pattern seen in previous market cycles. However, Martinez remains hopeful, believing that this drop may be temporary before Bitcoin starts to rise again.

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