The CEO of the BitMEX exchange has stated that the current cryptocurrency bear market could easily last for the next 18 months. BitMEX is one of the worlds largest derivative exchanges. Speaking with Yahoo Finance, Bitmex CEO Arthur Hayes indicated that “My view is the volatility environment that exists right now could persist for another 12 to 18 months. I’m just basing it off my previous experience.”
Bearish signs from Bitmex
What is surprising about this prediction is that Hayes previously claimed in June that BTC was going to reach USD 50,000. He is among many notable investors and high profile individuals within the crypto industry who have claimed that BTC would hit USD 25,000, USD 50,000, or USD 100,000 by the end of 2018. Of course, it goes without saying that investors heavily invested in BTC need to encourage the marketplace to invest, and it is hard to assess whether they are fully genuine when making these claims.
Hayes indicates that the current trading patterns resemble the downturn in 2014 when BTC declined from USD 1,300 to USD 200. When Hayes made his previous prediction, he stated that BTC was one positive regulatory decision away from USD 50,000.
What is a bear market?
The term ‘bear’ market may be a little misleading. Bitcoin is the best performing asset of the modern era. In January 2017, its price was USD 750. In December 2017, it was worth nearly 20,000. Now it is trading around USD 6,500, and it is being called a ‘bear’ market. An 800% increase within two years is not a bear market by any standards. In many ways, it is a matter of perspective, but those who believe in the underlying technology and hold for the long-term will have better results than later investors orientated towards creating a quick profit.
Other experts have made a distinction between the price of bitcoin and its adoption. While the price may be in a bear market since the start of 2019, regarding bitcoin and general blockchain integration into mainstream society, DLT is most certainly in a massive bull market. Awareness and adoption are far more important than arbitrary prices increases, which will mainly benefit traders and institutions as opposed to individuals and small businesses. Jonathan Levi, formerly of Goldman Sachs and Barclays, stated that –
“The price of bitcoin is undoubtedly in a bear market but in the application of bitcoin and other blockchain projects we are in fact in a bull market. Most of the EU banks are actively investing in blockchain and that all originally stems from bitcoin.”
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.