The ‘global financial meltdown’ may be about to ‘smoke’ Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon and Solana

ethereum and other major cryptocurrencies crashed in 2023 with a $200 billion earthquake.

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The price of bitcoin has shot up 30% since the start of the year, surpassing $23,000 per bitcoin after falling below $16,000 at the end of 2022. The price of ethereum has seen a similar rally as some of the top ten cryptocurrencies: BNB, XRP
cardano, dogecoin, polygon and solana—they have made huge gains.

Now, the former CEO of bitcoin and cryptocurrency exchange BitMex Arthur Hayes has warned that a “disastrous global financial meltdown” could be about to crash the price of bitcoin and the cryptocurrency market.

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“Bitcoin is simply experiencing a natural rebound from local lows of sub-$16,000,” Hayes wrote in a blog post, adding that he believes “bitcoin is recovering as the market is anticipating an upswing” in US money printing. Federal Reserve.

“Market anticipation of a pause in rate hikes and even a Fed pivot has developed despite repeated Fed official comments to the contrary,” crypto market analyst Noelle Acheson wrote in a note sent via e-mail.

Fed Chairman Jerome Powell, who pushed interest rates to a 15-year high last year as part of a concerted effort to cut inflation, said rates will need to rise in 2023, other officials echoed. of the Fed who approved raising the benchmark rate on federal funds above 5%.

“If the Fed does not follow a pivot, or multiple Fed governors deny any expectation of a pivot even after the ‘good’ consumer price index (CPI) is printed, bitcoin will likely plunge towards previous lows,” wrote Hayes, forecasting this scenario would cause “a crater in risky asset prices. Bonds, stocks and every cryptocurrency under the sun are all smoked out as the glue holding the USD-based global financial system together dissolves.”

If the “disastrous global financial meltdown” scenario occurs, then Hayes expects that he will “take another bite of the apple” and “know that the market has probably bottomed, because the crash that occurs when the system temporarily breaks down will it hold the previous $15,800 low or it won’t.

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The price of bitcoin fell to less than $16,000 following the shock crash of FTX last year that piled pressure on the combined cryptocurrency market, which had already lost about $2 trillion.

However, despite the warning of an impending market crash, Hayes expects the Fed to eventually step in to protect markets.

“It really doesn’t matter what level the down draft ultimately reaches because I know the Fed will subsequently switch to printing money and avoid another financial collapse, which in turn will hit a local low for all risky assets,” added Hayes.

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