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Arthur Hayes Expects $5,000 Ethereum by March 2023

Arthur Hayes Expects $5,000 Ethereum by March 2023, Crypto Trading News
Former BitMEX CEO Arthur Hayes says he expects Ethereum Reach $5,000 by the end of the first quarter of 2023.

His estimate is based on the dual expectation that the Federal Reserve will “pivot” and that the merge upgrade will be successful — both of which will price the second largest cryptocurrency support.

Inflationary dollar, deflationary ETH

As the co-founder explained in his latest blog entryEthereum is likely to have a higher return than Bitcoin achieve.

Although a Fed pivot would likely have a bullish effect on all asset prices, the merger represents an Ethereum-specific event that he believes will “have an incredibly powerful impact on the price of ETH.”

investment tip Arthur Hayes Expects $5,000 Ethereum by March 2023, Crypto Trading News

The Fusion is a long-awaited Ethereum upgrade that brings the consensus mechanism of the network of proof of work on Proof of Stake surrounded. This means Ethereum miners will become obsolete while cryptocurrency holders can earn returns by staking their holdings.

While the primary goal of the upgrade is to reduce Ethereum’s energy efficiency, it is also expected to reduce Ethereum’s supply issue rate by 90%. Combined with a growing ecosystem of users constantly burning up ETH through transaction fees, Hayes believes the upgrade itself will “drive the price of Ethereum exponentially.”

The merge has suffered delays for years due to technical complications, but developers are now confident it will happen by September 19th.

Also Hayes believes that this time is real Ethereum miners are actually starting to worry that this is going to happen. In fact, the former CEO claimed he has reached out to several members of the Chinese Ethereum mining community who are planning to launch a hard fork to orchestrate, which continues to use proof of work.

“Miners would not embark on this journey and spend valuable political capital within the community if they did not believe the merger would go ahead as planned.”

The Fed will turn around

The Federal Reserve has been pursuing tightening monetary policy for months in order to contain the record-high CPIinflation to curb. His action was instrumental in causing a sell-off in both the stock and crypto markets.

Hayes believes the Fed will most likely reverse this trend within a few months and return to printing money to protect the health of the economy.

Despite low unemployment, the economy has already faltered recession due to two consecutive quarters of negative GDP growth. Additionally, Americans have become even more pessimistic about the economy than they were during the Covid pandemic.

“Fighting inflation requires increasing the price of money (USD) and decreasing the money supply,” he explained. “The recipe for a ‘healthy’ American economy requires just the opposite.”

hay argued in a previous blog post that the US needed to weaken its currency against both the euro and the yen to protect the international economy.

Source: Crypto News Deutsch

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