Arthur Hayes, the former CEO of BitMEX, indicated that the price of Bitcoin could fall below $50,000.
Hayes expressed his opinion on Friday and announced that he is taking a short position in the Bitcoin market, meaning he is betting on a decline in the price.
Hayes stated this in a post on the X platform, saying:
Pray for me, I gamble.
The move reflects his pessimistic outlook as economic conditions turn increasingly anxious.
Will Bitcoin price go down from where it is now?
The Fear and Greed Index, which tracks investor sentiment in the cryptocurrency market, fell to 22 on September 6, indicating “extreme fear.”
This is the lowest level of the index since mid-August, and reflects a marked decline in investor confidence.
Meanwhile, Bitcoin fell 2.7% over the past day, hitting a low of $55,838, wiping out about $29.7 billion in market value.
Despite the slight recovery, the price returned to trade below the $55,000 level, which means that the atmosphere is still tense.
Short selling has become a preferred option for traders in these unstable economic conditions.
Traders like Hayes short-sell by borrowing bitcoin and immediately selling it in the hopes of buying it back later at a lower price, allowing them to profit in bear markets.
This strategy is an effective hedging method for investors who hold large positions in Bitcoin.
Additionally, some investors who see Bitcoin as overvalued or anticipate negative effects on the economy resort to short selling as a way to profit from potential volatility.
The decline in the price of Bitcoin was not limited to the digital currency, but the negative impact extended to all alternative digital currencies, which were affected in varying ways.
The drop affected the prices of cryptocurrencies and led to widespread liquidation.
