Arthur Hayes Sees Sub $50K Bitcoin Incoming!

Extreme fear grips the crypto market with BTC set to slip below $50K this weekend.

Author

Danielle du Toit
September 06, 2024

Here's what we've got for you today:

  • Crypto in ‘Extreme Fear’ as Arthur Hayes Tips ‘Sub $50K’ Bitcoin Weekend

  • Ethereum Faces Stiff Competition and Revenue Issues in 2024, Says VanEck

  • US Spot Bitcoin ETFs Saw $211 Million in Outflows, Extending Streak of Negative Flows

  • Pavel Durov Speaks Out For the First Time After His Arrest in France

BitMEX co-founder Arthur Hayes predicts BTC could sink another 12% to fall under $50,000 over the weekend.

  • The Crypto Fear & Greed Index reached a score of 22 on Sep. 6, indicating "extreme fear" in the market.

  • This is the first time the index has re-entered the "extreme fear" zone since Aug. 8, when the index hit 20.

  • Bitcoin has been struggling to gain upward momentum as there are some doubts about a potential Federal Reserve interest rate cut.

In its August 2024 Crypto Monthly Recap, VanEck shared a detailed analysis of the factors contributing to the poor price performance of Ethereum (ETH).

  • Ethereum's challenges can be attributed to a decline in network revenue, policy decisions, and value extraction by layer-2 solutions and service providers.

  • Users are increasingly moving to higher-throughput layer-1 blockchains like Solana, which offer faster and cheaper transactions, which is reducing demand for Ethereum.

  • The March 2024 Dencun upgrade also lowered fees for Ethereum's layer-2 networks, which addressed high fees and congestion but caused a steep decline in Ethereum's revenue.

Thursday’s spot Bitcoin ETF outflows were the 7th consecutive day of negative flows.

  • Fidelity's FBTC saw the largest outflows among spot Bitcoin ETFs, with $149.49 million, followed by Bitwise’s BITB, which had $30 million in net outflows.

  • Grayscale’s GBTC recorded $23.22 million in outflows, while its mini trust saw $8.45 million withdrawn on Thursday.

  • No funds recorded net inflows, and the total daily trading volume for the 12 ETFs dropped to $1.35 billion.

Durov criticized his ‘unnecessary’ arrest in France, and made it very clear that Telegram is still promoting freedom of speech and expression.

  • According to Durov, Telegram is very willing to exit markets that oppose free speech as the platform’s mission is to protect human rights rather than financial gain.

  • He also shared that French authorities had multiple ways to contact him, as he is a French citizen and regularly visits the French Consulate in Dubai, making his arrest unnecessary.

  • Durov is also confused by the decision to charge him personally, and believes that legal actions should have targeted the company instead.

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