Former CEO of BitMEX crypto exchange Arthur Hayes has warned cryptocurrency investors that there might be more forced selling in the short term.
<h2>Arthur Hayes Expecting More Forced Selling</h2>
Referencing a popular quote from Warren Buffet, Hayes suggested that the market is trying to figure out who is swimming naked. Buffett’s explanation of that quote is that the outgoing tide usually exposes the risks and vulnerabilities of certain firms.

This is particularly applicable to the current crypto market situation where leading players like <a href="https://www.cryptoknowmics.com/news/celsius-seeks-more-time-to-stabilize-liquidity-after-withdrawal-freeze/" target="_blank" rel="noopener">Celsius</a> and <a href="https://www.threearrowscap.com/" target="_blank" rel="nofollow noopener">Three Arrows Capital</a> (3AC) are displaying huge signs of weaknesses. If this trend continues, many other top industry players will likely follow the steps of celsius and 3AC.

As noted by Hayes, Canada's Purpose Bitcoin ETF liquidated 24,500 BTC on Friday, which represented roughly half of its total holdings. The fund had about 43,701 BTC as of June 1, 2022. Hayes added that that’s a lot of physical BTC to sell within a short period.

https://twitter.com/CryptoHayes/status/1538656656703520768

Over the weekend, the Bitcoin price plummeted to $17,600, representing a 20 percent decline within a couple of hours. The $17,600 price represents its lowest since December 2020. However, Hayes claimed that the drop indicates that a forced seller triggered several stop-loss orders.

However, Bitcoin bulls shouldn’t expect that Bitcoin is on a recovery path yet as according to Hayes there may still be more forced selling as some crypto lenders have poor risk management and over-extended lending terms.

https://twitter.com/CryptoHayes/status/1538656664072912896

Former BitMEX CEO Arthur Hayes Expects More Forced Selling of Crypto

Former CEO of BitMEX crypto exchange Arthur Hayes has warned cryptocurrency investors that there might be more forced selling in the short term.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Former BitMEX CEO Arthur Hayes Expects More Forced Selling of Crypto

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