Former Bitmex CEO Arthur Hayes said that Ethereum might reach $10,000 in value by the end of the year 2022. He cautions that the market, particularly in the middle of the year, might be volatile.
Hayes also spoke out about Terra’s demise, which he attributed to the Federal Reserve’s hike in interest rates and the ensuing liquidity crisis that caused the stablecoin price to collapse.
Despite the Volatile Market, Ethereum Is Expected to Reach $10,000.
Hayes believes that ETH’s long-term growth potential is so great that the cryptocurrency will be worth $10,000 by the end of the year.
While the market may be volatile at the moment, once the central bank slows the rate hike process, ETH and the rest of the cryptocurrencies will return to shape.
On the collapse of Terra
While talking about Terra, he said that it was bound to fail because of how it was programmed: “For the record, I’m not blaming the Fed for the collapse of TerraUSD. Its collapse was preordained because of how it was programmed. That information was fully available to anyone who read the whitepaper and/or researched the bleak history of algorithmic stablecoins. My point is that the Fed provided the catalyst for something that would have happened eventually anyway.”
In April, Hayes explained why Ethereum would have a wonderful year in 2022. A “currency bond” or “commodity-based” blockchain will emerge when the system converts to Proof of Stake (POS), he claims, instead of BTC, which he claims is “pure money.”
He claims that ETH is also a superior investment to Bitcoin and other coins. Ethereum will have a decisive advantage over the competition when The Merge takes place in the summer of 2022.
Better than BTC in every way.
He believes ETH is better than BTC because “ETH is a commodity used to power the computer, not just a purely financial instrument.”
For example, if you hedge your ETH/USD or local currency against the US dollar, you’ll collect an additional 6.90 percent in profit or dividends. Major Bitcoin investor Michael Saylor issued a corporate bond to purchase Bitcoin.
Individuals should buy Ether and ETH bonds, according to Hayes. If a buyer of ETH can be immediately identified as a DeFi or Metaverse company, then the value of their investment will rise.
When Ethereum switches to a proof-of-stake method soon, Hayes believes it will generate more ESG funds and get regulatory immunity. Because proof-of-stake is more environmentally friendly than proof-of-work, more people advocate for it.
Hayes believes that Ethereum’s price rise is unlikely to occur soon because the overall market is unstable and highly volatile. Our best bet is that the Federal Reserve will rethink its laws and ease off on crypto market regulations.
Although the cryptocurrency market has fluctuated, Hayes believes that Ethereum can reach $10,000 by year’s end if the current trend continues.
ETH current technicals.
Currently, Ethereum is trading at $ 1,773 (at the time of writing), 12 % down from its weekly high.
Ether has been consolidating in a tight range since the fall in the aftermath of the UST de-pegg event. It has been oscillating between $ 1,700 and $ 2,170.