While the Ethereum believers are already facing the music pertaining to the nosedive Ether price have taken in recent times, Arthur Hayes, CEO of Bitmex, added to the misery by calling Ether a ‘shitcoin’ and that its value will decrease to less than $100.
In an article published in Crypto Trader Digest – Bitmex’s official blog – Arthur explained why he thinks Ether market in the past few months has been an ephemeral thing. According to him, the market had taken a psuedomorphic form because a large fraction of investments in Ether and other ERC20-based tokens came from individual and institutional investors, but only to fall flat as the investors sold off too much, which happened because the bear market extended more than the world could predict.
Arthur further added that the Ethereum market boomed temporarily due to the influx of funds from VCs that are much more stable due to diversified portfolios, compared to cryptocurrency markets that are infamous for volatility. The downfall of the smart contracts-based platform also happened because hedge funds also started disposing off assets just like other investors.
Although the second significant struggle, after the infamous crash of Bitcoin in late 2017, hit the reverse gear for Ether, slamming the price to as low as $259, Ethereum, as for now looks stable, touching the $300 USD mark once again. As per CoinMarketCap, the market capitalisation of Ethereum is currently pegged at $30 billion USD, with a 24-hour trading volume of $1.7 billion.
Clearing his stance of crypto-tokens, Arthur also commented on Bitcoin, stating that the world’s first cryptocurrency is well on its way to linger below the $5000 mark, and may even land somewhere between $3000-4000, which may not be good news for miners as the profitability of mining would take a drastic toll.