Crypto bear market has another 12 to 18 months to run says BitMEX’s Hayes, Grayscale raises $330 million

Arthur Hayes

Arthur Hayes of the crypto derivatives exchange BitMex thinks the bears won’t be going away for a while yet.

In comments to Yahoo Finance UK he said: “My view is the volatility environment that exists right now could persist for another 12 to 18 months, the flatness.”

That sort of stability is good news for bitcoin as a means of payment and unit of account but it is bad news for Hayes’s exchange, which relies on volatility to attract traders.

Bitcoin volatility has dropped markedly in recent weeks.

Hayes had earlier this year seta price target for bitcoin of $50,000, which has not materialised, so perhaps his latest words of wisdom should not be taken too seriously.

He’s not the only one who has set targets that with the hindsight of this year’s bear market seem fantastical, such as FundStrat’s Tom Lee’s $20,000 pitch.

Hayes also thinks that the bottom may not yet have been reached for the crypto markets and bitcoin in particular.

Bithumb coming to America, Grayscale raises $330 million

In other news, South Korean exchange Bithumb is planning to set up an exchange in the US for securities tokens.

It has teamed up with one-stop crypto and ICO shop SeriesOne.

Elsewhere, Grayscale Investments in its latest report says it has raised $330 million, a 13x increase on last year and the most it has ever raised as institutions by the bottom. The report can be found downloaded from here.

“Investors are taking the pullback as an opportunity to increase their exposure,” Michael Sonnenshein,  Grayscale’s managing director told CNBC.

Grayscale runs the Bitcoin Investment Trust and its founder Barry Silbert has his fingers in a multitude of crypto companies, from Coinbase to CoinDesk, via his Digital Currency Group.

Bitcoin technical analysis

Bitcoin is now facing stiff resistance at the 50-day simple moving average at around $6,370.

The next resistance level to attack is at $6,635, to return bitcoin to the highs last seen on 8 October ,before the $400 fall on the 11th.

The most recent reversal on 29 October has pushed BTC back into a tight range, but at a higher low than seen on the 8 October, but with lower highs to create a bearish trend line (blue line).

Bitcoin is currently 1% higher, trading at $6,303, according to coinmarketcap.com.

The rest of the market is higher too: EOS 2.5% the better in the past 24 hours at $5.26. IOTA and Tezos have both moved forward 3%.

btc price chart

BTC 4-hour chart, 1 November (courtesy of TradingView)

About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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