Bitcoin Going Below $50,000: 2017 Crypto Legend Arthur Hayes

As a seasoned researcher with over a decade of experience in the financial markets, I must admit that the current state of Bitcoin seems eerily familiar. The bearish sentiments, the institutional withdrawals, and the downward price channel all hark back to my early days in the market when I watched the dot-com bubble burst.


After Bitcoin’s dip below $58,000, noteworthy crypto expert Arthur Hayes has ventured to predict a further drop. He thinks Bitcoin could slide under the $50,000 mark.

The timing of this call suggests a pessimistic near-term perspective since it aligns with one of Hayes’ initial public disclosures about his short position on Bitcoin. In a recent post, Hayes expressed that Bitcoin seems overweight, targeting the price below $50,000 and initiating a short while requesting prayers for good results.

This mindset aligns with the widespread negative sentiment towards the market, as large-scale investors appear to be exiting the market, and there’s still a prevailing gloom about Bitcoin’s price. A clear sign of the challenging circumstances is the substantial withdrawals from Bitcoin spot ETFs that have been happening over the past week, suggesting a decrease in institutional investor enthusiasm.

Bitcoin Going Below $50,000: 2017 Crypto Legend Arthur Hayes

On September 5th, a total amount of approximately $211 million left various Bitcoin ETFs. Grayscale’s GBTC ETF contributed about $23.2 million to this outflow, while Bitwise’s BITB ETF accounted for an additional $30 million. The most significant outflow came from Fidelity’s FBTC ETF at a staggering $149 million. This continuous withdrawal of capital has been driving down the price of Bitcoin due to investor hesitance to invest or maintain positions in the current market climate.

The significant pullback from Bitcoin spot ETFs is evident as their combined total net asset value has decreased to approximately $50.727 billion. Given the present negative market outlook, Hayes’ forecast that Bitcoin could dip below $50,000 doesn’t seem too far-fetched.

Without a doubt, the graph clearly shows Bitcoin moving within a falling price trend and breaching significant support lines such as the 200 Exponential Moving Average. It’s possible that we could see prices drop below $50,000 in the near future given the current outflows and impending uncertainties.

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2024-09-06 12:36