BitMEX CEO predicts Bitcoin to retest $3,000 before reaching $20,000 in 2020

BitMEX CEO Arthur Hayes recently published a blog post with a lot of profanity, explaining his views on the current market situation. ChainNews excerpted a section that cryptocurrency investors may find particularly interesting.

Regarding the price, Arthur Hayes stated:
"Like all asset classes, leveraged money is punished. However, Bitcoin outperformed the S&P500 in the first quarter. The correlation with the S&P500 index has reached recent highs."

During the downtrend, leveraged money was liquidated. BitMEX's XBTUSD perpetual swap open interest is slowly rebuilding, and as traders gradually shake off distress and adjust inflation expectations, they will start to seriously look for inflation hedges.

This is the first act of global rebalancing. Price distortions caused by leveraged funds will be profitable. Buy the dip under your own risk.

Bitcoin will be owned by the deleveraged market. Will the price retest 3,000? Absolutely.

As the S&P500 index reverses and tests 2,000 [Note 1], it is expected that all asset classes will experience another massive sell-off. Just like the drastic drop in asset values in the first quarter, we have nearly 100 years of imbalance to eliminate the old system [Note 2]. My price target by the end of 2020 remains $20,000."

[Note 1]: The current S&P500 index is at 2789
[Note 2]: Referring to the previously mentioned USD-based system

In Arthur Hayes's blog, he often describes currency history, political and economic issues, leading to Bitcoin, and advocates for trading. When all thought leaders are bearish on traditional asset markets, the cryptocurrency market is no exception, but they tend to point to Bitcoin as the solution. As the owner of an exchange, Arthur Hayes logically encourages people to trade. The $20,000 figure is not new for him, but mentioning a retest to 3,000 could indicate pessimism towards recent traditional assets, which may also affect Bitcoin, which has been moderately positively correlated recently.

Further Reading

• Quantitative Easing Turning Point? BitMEX: "Interest Rate Wars" by Central Banks Will Drive Bitcoin to $20,000 by Year-End
• BitMEX: In-Depth Analysis of the Different Impact of Two Types of Central Bank Digital Currency Policies on Credit and Economy
• [Full Translation of BitMEX Commentary] Inflation Is Coming, This Is the Biggest Opportunity in Bitcoin's Brief History

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