Arthur Hayes: Bitcoin Will Continue to Fall

BitMEX former CEO Arthur Hayes has said that forced liquidations of positions in the near future will put further pressure on the price of Bitcoin.

He has drawn attention to the liquidation of 24,500 BTC by the Canadian Purpose Bitcoin ETF (BTCC) on the evening of June 17, shortly before the close of trading. He has explained:

“I’m not sure how they redeem, but that’s a lot of physical bitcoins to sell in a short time.”

Hayes has noted that over the weekend, when fiat channels are closed, the price of BTC dropped to a low of $17,600 on high trading volume. After a nearly 20% dump, the market quickly rallied already on low volume. According to him, it looks like a forced seller “instigated a run on stop losses.”

He has written:

“Given the poor state of risk management by crypto lenders and overly generous terms, expect more pockets of forced selling of BTC and ETH as the market figures out who is swimming naked.”