The founder and CEO behind BitMex, Arthur Hayes, told CNBC News that the cryptocurrency has not yet peaked despite the recent rally in Bitcoin prices. Despite predicting that Bitcoin would reach the $50,000 mark by the end of the year, Hayes sees the currency rising to around the $10,000 mark before falling and then rising to meet its peak value. So far, Bitcoin’s record high was reached in December 2017, when the cryptocurrency was valued at $20,000.
Growing Acceptance of Bitcoin Among Regulators but Also Headwinds
While governments are increasingly accepting Bitcoin as a bona-fide financial asset, some countries are still struggling with policymaking. For example, the government of India has not yet accepted Bitcoin and other cryptocurrencies as commodities but announced that it would work on reforming its policy.
International market analysts have put forward the opinion that the banking system in India is fighting to maintain a status quo in which it holds absolute power over individual’s finances following the scrapping of paper money in 2016. Earlier this month, the Reserve Bank of India imposed a cryptocurrency ban, but cryptocurrency supporters are hoping that the judiciary will strike down this policy.
Meanwhile, South Korea has announced its intention to support financial innovation, including cryptocurrency trading, in an apparent reversal of its January statements which raised fears of a total crackdown on digital currencies.
Hayes Predicts Further Volatility but Expects Record High by Q4
Bitcoin’s critics have often cited its volatility as a negative indicator, but Hayes sees the cryptocurrency’s ups and downs as part of a growth curve. The Bitmex CEO expects the current rally to peak at no higher than $10,000 but expects Bitcoin to bottom out at no lower than $5,000.
He bases his prediction on summer downtime among investors and expects to see Bitcoin rallying strongly in Q3 and Q4 this year. By the end of the year, he believes that it will be perfectly feasible for the cryptocurrency to reach the $50,000 mark.
“The party is going to start again,” says Hayes in an email to CNBC.