BitMEX Founder Arthur Hayes Bets on Bitcoin Dip, Dumps Solana and Bonk

Hayes with a chart forming a dip

BitMEX co-founder Arthur Hayes has made a splash in the crypto world with his recent investment moves. Hayes believes that Bitcoin is headed for a dip and has placed a bearish bet by purchasing puts expiring in March 2024 that profit if the price falls below $35,000. To free up capital for this bet, he sold his holdings in Solana and Bonk at a slight loss. If his prediction holds true, Hayes plans to “bottom fish” for undervalued buying opportunities.

Arthur Hayes, the co-founder of cryptocurrency exchange BitMEX, has shared his latest investment strategy regarding Bitcoin, revealing his belief in a potential price drop and outlining his actions based on this prediction.

An Accurate Prediction

Hayes made his investment strategy known in a January 24 blog post titled, Yellen or talking. It is instructive to note that Hayes accurately analyzed that the price of Bitcoin would drop below the $40,000 mark this week.

Hayes anticipates Bitcoin finding support between $30,000 and $35,000. To capitalize on this prediction, he purchased 29 March 2024 $35,000 strike puts, essentially betting on Bitcoin falling below $35,000 by the expiry date. Alongside this move, Hayes sold his trading positions in Solana and Bonk, albeit at a slight loss, potentially to free up capital for his Bitcoin puts purchase. If Bitcoin indeed dips below $35,000, Hayes intends to start “bottom fishing,” suggesting he would look for buying opportunities at potentially undervalued prices.

A Belief in Long-Term Potential of Bitcoin

Hayes‘ actions and insights offer valuable perspective on the current market sentiment and potential investment strategies for Bitcoin traders. His bearish prediction and puts purchase could contribute to selling pressure on Bitcoin in the short term. However, his intention to buy if the price falls significantly suggests he believes in Bitcoin’s long-term potential.

Hayes’ predictions are based on his own analysis and market interpretation, and they may not necessarily come true. The cryptocurrency market is inherently volatile, and unexpected events can significantly impact prices. Investors should always conduct their own research and due diligence before making any investment decisions.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.