Former CEO of the company BitMEXArthur Hayes thought Bitcoin (BTC) He bottomed out, saying, “Most of the neglected companies have run out of bitcoin to sell, so the BTC price may have bottomed out.”

JUST IN: Former BitMEX CEO Arthur Hayes says Bitcoin has bottomed out as “everyone that goes bankrupt, goes bankrupt.”

– whalechart.org (WhaleChart) December 12, 2022

Arthur Hayes Bitcoin has bottomed out

According to the former CEO of a cryptocurrency-related stock market, cryptocurrencies may have suffered the worst of it as there are no longer enough tokens to be offered for trading by the largest and most trusted companies. In his opinion, Bitcoin can expect a rally in the coming days.

To illustrate his position, Hayes says that centric lending institutions tend to use pre-deal loans when faced with financial challenges. Realizing that BTC acts as a reserve asset for cryptocurrency and that it is the purest and most liquid asset, he argues that all companies that are prone to bankruptcy have all gone bankrupt, leaving the coast clear for the bulls.

In a Dec. 11 interview with S. Melker of the podcast I look forward “There has been a massive sale of Bitcoin,” he said. The former CEO of digital asset derivatives platform BitMEX in a post on Dec. 19 made an almost identical argument, claiming that large Bitcoin trades have yet to take place on exchanges due to the crypto winter, where institutions and trading firms are exchanged. Trying to stay afloat by selling their property.

“I can’t prove that all of the bitcoins held by these failed institutions were sold during multiple crashes, but it appears they went out of their way to liquidate the most liquid crypto collateral they could use right before they crashed.”

While Arthur was unable to show that every bitcoin held by bankrupt companies was sold during market dips, he does confirm that institutions made every attempt to trade the most valuable crypto collateral before filing for bankruptcy.

To support this hypothesis, Hayes argues that companies on the verge of a liquidity crisis have no reason to hold onto their Bitcoin because at that point it becomes urgent. For example, in May, the Luna Foundation Guard sold most of its Bitcoin reserves to maintain the TerraUSD (UST) stablecoin peg.

On that note, Hayes says the expected course of action for distressed companies is to “ask for loans and then sell their bitcoin holdings to avoid going bust.” Thus, BTC drops in value right before companies file for bankruptcy, with Hayes saying that the crash marks the lowest possible level for Bitcoin in the current cycle.

In particular, during the weeks following the collapse of the crypto company FTX, Bitcoin price It fell to $15,599 as crisis-hit institutions offloaded their bitcoin holdings. Over the past few months, countless major players in the industry have filed for bankruptcy, including FTX, BlockFi, Voyager Digital, Three Arrows Capital (3AC), and Celsius.

However, Hayes says that the cryptocurrency will not make an immediate recovery as traders try to recoup their losses during bear market rallies, but supports that he remains confident that cryptocurrency prices will come back higher, adding that “it is worth waiting for.”

BTC has entered its winter

The fourth quarter of 2022 saw a loss of about 58% in Bitcoin prices, which was similarly affected by mining activity along with the loss of nearly $1.2 trillion in the market for all cryptocurrencies. Regulators are watching the situation closely due to the heavy losses suffered by institutions and retail investors, and cryptocurrency regulations are getting stricter around the world, especially in the United States.

However, many analysts said that this week is the most important for major cryptocurrencies as there are many important events on the horizon. First, the release of the Consumer Price Index (CPI), which was published on December 13, and second, the Federal Reserve’s expected rate hike decision on Wednesday.

In terms of CPI data, Bitcoin (BTC) and Ethereum (ETH) prices rose after the US Bureau of Labor Statistics released Consumer price index (CPI) for the month of November. From the report, the US Consumer Price Index fell to 7.1% from 7.7% in October. The expected CPI data for November was 7.3%.

🚨 BREAKING: US CPI data for inflation drops to 7.1%, below forecast 7.3%, previous 7.7% 🚨
Super Bullish News for Crypto, # Bitcoin Explode now

– Oscar Ramos (@realOscarRamos1) December 13, 2022

Bitcoin (BTC) price is up more than 3% after the inflation data. In the last 24 hours, bitcoin price is now up 5% from a low of $16,944 to a high of $17,796 as of press time, based on CoinGecko Data. The trading volume rises by more than 25%, which indicates that the traders are engaged.

My morning is not going well… #BTC #CPIData pic.twitter.com/cgMBVHs76w

– D⭕CTOR DΞGEN (Doctor_Degen) December 13, 2022

According to analysts, as the Christmas holidays approach, followed by the end of the year, Bitcoin could record a historic “Santa rally.” However, the same analyst recognizes that other factors also have a say in BTC’s fate, citing the movement of the US Dollar Index (DXY), Bitcoin’s supply shock ratio approaching a 10-year high, and the end of miners selling their assets.

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