Ethereum: ETH has not yet reflected the true value in the new ecosystem - Arthur Hayes
BitMEX co-founder Arthur Hayes said the market has yet to appreciate the importance of a successful transition of Ethereum (ETH) to a proof-of-stake consensus model.
Listen to this article
In an interview with Real Vision's Raoul Pal, Hayes said that the Ethereum network is now capable of supporting a new ecosystem full of new businesses and protocols, something not yet included in the ETH price.
“Obviously ETH price doesn't reflect this right now as we have huge liquidity concerns, but I think assuming the upgrade continues to go well, you have interesting things to do. This [will] create new business for the entire ecosystem, that may not be entirely clear today. It can take six to 12 months for people to say: 'Oh, okay, now I get it.' There are completely new primitives… They owe their existence to the fact that there is this profit that I can count on if I stake my ETH.”
At the time of writing, Ethereum is valued at $1,315, down almost 20% since the merger occurred on September 15.
Crypto veterans say that in general, the crypto market is at or near the bottom of a bear market. According to Hayes, Bitcoin (BTC) and cryptocurrencies are likely to be in a swing phase near the bottom before the next cycle begins.
“I think we are cutting the bottom. Do we have $17,500 worth of Bitcoins? Do not shrink. I think it would be much lower if it broke? Sure is not. My whole thought was, 'Well, who sells the material?' We had a classic credit crunch, like any other asset class...
And then you think, who went bust? Hedge funds, startups and the biggest and most revered figures have come out and say they're having some financial troubles. So the only people left that I think can sell by size are miners, and then one has to wonder, they didn't have to sell by size in mid-June when the price was even lower now when people throw away credit and no one can get credit? ...
I just don't see that magnitude, which leads me to believe we're just cutting through the bottom. We may not be here for a while. We can stay here for a while. That doesn't mean we're going up soon. But I guess I don't know anyone else who has a store they have to sell for today. "
At the time of writing, Bitcoin is trading at $19,337, unchanged on the day.
Oct 02, 2022
