Bitmex CEO, Arthur Hayes, who is a Wall Street Veteran and one of the industry’s biggest Bitcoin bulls has defamed Ethereum, the second largest cryptocurrency by calling it a ‘shitcoin’ and predicted that its price will drop below $100.
Hayes made this prediction in the Bitmex newsletter, Crypto Trader Digest where he explains in detail about Ether’s unsustainable success.
He further claimed that since the cryptocurrency investors have seen this market shed over $600 million since January 2017, they may decide to disinvest in Ether completely.
Hayes stated in the newsletter,
At a certain point, they go “fuck it”, and dump everything they can.
The VC investor who has never suffered the vagaries of the market is as green as the noob who thinks he or she can go from 1 to 100 Bitcoin in a few trading days. They don’t have the mental strength to cut positions to limit further losses, or backup the truck and buy opportune dips even though they are down. More importantly, LPs can now see an objective last price for a particular token, and can’t be hoodwinked. They will attempt to be a Monday morning quarterback, and that only adds to the VC investors’ anxiety.
He further added,
I don’t know what that tipping point will be, but in hindsight, it will be obvious when the capitulation occurs. There are those who believe that a sustainable token economy can exist. But they won’t be buying at these levels. Sub-$100 takes us back to Spring 2017 levels. At those depressed prices, the carrion is ripe for ingestion.
It is this moment that Ether goes from a 3-digit to a 2-digit shitcoin.
Even though Ethereum is at a low and down 80 percent since its high in January 2018, it is unlikely that its price will fall below $100 or even below $200.
Ethereum is currently ranked #2 by market cap and is trading at $299.02 at the time of writing according to coinmarketcap.
Read Also: CoinFrenzy’s guide to Ethereum Mining