Arthur Hayes, the Former CEO of Bitmex, harped on the potential of Ethereum registering $10,000 in value by the end of 2022. But, he reiterates that the market could be turbulent, especially in the middle of the year.
More so, Hayes also expressed his opinion regarding the downfall of Terra, which is the direct result of the increase in the rates of the Federal Reserve and the liquidity crises that pushed the stablecoin price to crash.
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Ethereum To Hit $10K Despite Volatile Market
On a broader spectrum, once you look at ETH’s potential for the long-term, Hayes is confident that the crypto can exponentially grow and shoot to $10,000 at the end of the year.
The market may be erratic at the moment, but ETH and the rest of the cryptocurrencies would revert back into shape once the central bank also decelerates the rate increase process.
The collapse of Terra is doomed from the onset because of its own programming. The Fed policies on the tightening of global central banks pressing on the liquidity problems are just the tip of the iceberg. It was all in the bag.
Hayes believes that ETH will reach $10,000 by the end of 2022 if the bullish trend continues, despite the volatility of the cryptocurrency market (Medium).
Hayes has recently announced in April why 2022 is destined to be a spectacular year for Ethereum. He says that once the blockchain transitions to a proof-of-stake (POS) system, it will now be commodity-based or a “currency bond” as opposed to BTC, which he says is “pure money.”
Further, he states that ETH is a better investment than the BTC and other coins. The transition that is set to happen in the summer of 2022 will be the tipping point that will put Ethereum ahead of the game.
ETH More Superior Than BTC
Hayes has strong convictions about how ETH is superior to BTC because he says, “ETH is a commodity used to power the computer, not a pure monetary instrument.”
Hedging your ETH/USD or local currency would mean you receive income or a premium of +6.90%. Michael Saylor, a major Bitcoin holder, issues a corporate bond with buying Bitcoin.
Hayes recommends that people should buy Ether and issue ETH bonds. The logic behind this is that someone who purchases ETH will automatically be identified as a DeFi or Metaverse company, increasing the stock price.
ETH total market cap at $213.5 billion on the daily chart | Source: TradingView.com
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With ETH shifting to a proof-of-stake mechanism real soon, Hayes believes that ETH can drive more ESG funds and get immunity from regulatory issues. More people are pushing for a proof-of-stake mechanism because it is eco-friendly compared to the proof-of-work mechanism.
On the Ethereum price hike, Hayes says that this might not happen soon as the general market condition could be shaky and highly volatile. The only hope here is that the Fed would rethink its regulations and not put so much pressure on the crypto market.
Despite the fluctuations in the crypto market, Hayes believes that Ethereum can hit $10,000 at the end of 2022 once the bullish trend carries on.
Featured image from Cryptonary, chart from TradingView.com