BitMEX CEO Arthur Hayes Stands by $50,000 Bitcoin Price Prediction

Omar Faridi
  • BitMEX CEO Arthur Hayes recently stated on CNBC’s Fast Money show that he’s sticking to his $50,000 Bitcoin price prediction by end of this year.
  • Hayes said that Bitcoin could be “one positive regulatory decision away” from again hitting the $20,000 mark, and then surging to $50,000.

BitMEX CEO Arthur Hayes recently stated that he still thinks Bitcoin (BTC) will reach $50,000 by the end of this year. The Wharton School graduate sated on CNBC that he thinks “something that goes up to $20,000 in one year can have a correction down to around $6,000.”

He added that bitcoin might be “one positive regulatory decision away” from again reaching the $20,000 price range, and then climbing up to $50,000. This regulatory decision could be something like an ETF being approved by the US Securities and Exchange Commission (SEC), according to Hayes.

The CEO of BitMEX further noted that he thinks larger cryptocurrency price movements will occur during an even shorter timespan as we move forward. This, he added, because of the increase in the number of active participants in the evolving crypto market.

Hayes then pointed out that from 2013 to 2015, “we went for $1,200 to $200” and from 2015 to 2017, “[from] $200 to $20,000.” Having gone through these large price swings in previous years, Hayes believes it is possible that the timespan between these high price fluctuations could become shorter due to the sheer number of investors “who have invested capital and resources to trade this asset class.”

Additionally, the cryptocurrency exchange’s chief executive revealed higher liquidity levels, along with an added interest in cryptocurrencies, will lead to a shorter timespan “between an aggressive bear market and an aggressive bull market.”

Bitcoin's Unexpected Surge 

Fundstrat co-founder Tom Lee has also made a bullish bitcoin price prediction, as he believes the cryptocurrency hit $25,000 by the end of 2018. Hayes himself has in the past predicted BTC will hit $50,000.

Notably, bitcoin’s price fell below $5,900 this week and many market analysts thought it would decline further. The cryptocurrency has been enduring a bearish trend that saw it drop from a near $20,000 all-time high since late last year. Surprisingly, though, the flagship cryptocurrency has surged to around $6,400 and appears to be stabilizing at this price.

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Tim Draper Calls Indian Government “Pathetic and Corrupt” Over Bitcoin Ban

  • Tim Draper calls the Indian government "pathetic and corrupt" over a proposed ban on cryptocurrency.
  • Unofficial drafted bill has emerged online making the use of cryptocurrency punishable with 10 years in prison.

American billionaire investor Tim Draper has called out the Indian government over its purported plan to ban bitcoin and all forms of cryptocurrency. 

Proposed Bitcoin Ban

On July 14, blockchain lawyer Varun Sethi published to Twitter an unofficial draft of a bill circulating the Indian government that would ban the use of cryptocurrency. 

In addition to prohibiting the use of bitcoin, the bill seeks to impose a 10-year prison sentence on Indian citizens who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.” The bill does allow one caveat for the digital rupee, which is a token issued and backed by the Reserve Bank of India (RBI). 

Pathetic and Corrupt

In response to the proposed ban, Tim Draper took to Twitter to vent his feelings against the Modi government. 

Draper, who is known for his massive investments in Baidu, Skype, and Tesla, has become a bitcoin bull over the years, in addition to issuing some of the more far-fetched price predictions.

The American investor has also been an active presence encouraging developing countries to consider the benefits of bitcoin and digital currencies. More recently, he advocated the utility of bitcoin to the Argentine government, a country that has been combating fiat hyperinflation for years. 

Others Weigh In

Other high profile individuals have voiced their disapproval over the Indian government considering a bitcoin ban, including Barry Silbert who predicted the decision having the opposite effect on bitcoin adoption. 

John McAfee also chimed in with his belief that governments have little control over the use of bitcoin. 

Supporters of the Ban

However, not everyone took kindly to Draper’s harsh criticism of the Modi government. Given the rise in cryptocurrency-related scams over the past two years, some Indian citizens believe banning bitcoin will be a net positive for the country. 

While Draper may be stirring national sentiment related to cryptocurrency, it’s worth noting that the Indian government has yet to impose a ban of any sort. However, given the amount of rhetoric over the last several months and the more recent emergence of the drafted bill, it appears the Modi government is indeed contemplating decisive action against bitcoin and digital currencies.