The crypto winter continues in the crypto market, which makes some investors feel a sense of fear and insecurity, inevitably leading to panic. However, BitMEX co-founder Arthur Hayes believes this pullback could provide an opportunity to gain strength.
In a recent Twitter thread about price action in the crypto market, the former BitMEX exec tried to make his followers think by asking them if they have a short or long-term strategy for investing in digital assets. Hayes explained that the short-term price action is ugly. At the same time, assuming that someone is long, it could mean they read the market wrong. He points out that investors can “cover, sit tight, or add more” and their actions ultimately depend on how nervous they are and how well they can read charts.
1/— Arthur Hayes (@CryptoHayes) August 19, 2022
Ouchie. Time to do some thinking.
Are you trading a medium to long-term fundamental thesis?
Or are you trading short-term price action? pic.twitter.com/HDrqlqgTAJ
Hayes believes that only those whose investment thesis has changed dramatically should leave the market. Giving the example of Ethereum and The Merge, he stated that if the long-awaited event is canceled for any reason, it will make him worry about his position. Since this is not the case, and The Merge is still planned for the next few weeks, Hayes still believes in Ethereum and suggested that “it might be time to go shopping.”
The BitMEX co-founder looks optimistic about The Merge, which will move Ethereum from energy-hungry PoW to greener PoS. In a recent post, Hayes said he believes there could be a sell-the-news moment, meaning that the price could retrace in the short term, but it would be ultimately positive for long-term investors.
“If the merge is successful… traders will buy ETH today, knowing that the higher the price goes, the more the network will be used and the more deflationary it will become, driving the price higher, causing the network to be used more, and so on and so forth,” he explained. “This is a virtual circle for bulls.”
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.