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Ethereum at $10,000 by End of 2022 Still Possible, Reiterates Arthur Hayes

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Former Bitmex CEO Arthur Hayes said that ETH at $10K by the end of 2022 is still possible, but the market will likely be choppy in the mid-term.

Arthur Hayes, the co-founder and former CEO of leading crypto derivatives platform BitMEX, said Terra’s failure was a byproduct of the macroeconomic environment as the Feds raised rates and tightened up its balance sheet.

He also expressed conviction on the broader market in the medium and long term, reiterating that Ethereum could still reach $10,000 at the end of the year. In his view, the market currently is either nearing or at the bottom of the cycle, and a comeback would begin once the Fed slows down the rate hiking process.

Terra’s Fall Resulting From A Brewing Liquidity Crisis

In his latest blog post, the former CEO predicted that the Fed will continue the speedy process of raising interest rates throughout the Q3, heightening the downward pressure currently imposed on the crypto market. He also touted the possibility that the incident of UST plunging may have been a sign of a local bottom.

Diving into the potentially rooted cause underlying the recent meltdown of Terra’s ecosystem, he agreed with a suggestion that the broader risk-off environment pushed VCs to cash in LUNA investments all at once, eventually leading to a liquidity crisis that drove the stablecoin’s price down. He added that once the peg came off, people began to swap their USTs for other stablecoins or fiats, which worsened the situation culminating in the total collapse of its sister token, LUNA.

“The TerraUSD collapse was an indirect result of global central bank liquidity tightening. As such, I believe this event brought forward pain that would have occurred anyway months down the line as the Fed and others continued to tighten liquidity conditions.”

However, he clarified that Fed’s hawkish policies were only an indirect catalyst as the final nail upon Terra’s coffin since “its collapse was preordained because of how it was programmed.”

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