Former BitMEX CEO Arthur Hayes has strategically entered the market by acquiring put options with a strike price set at $35,000. Hayes envisions a potential 10-15% decline in the face of existing selling pressure, aiming to guide the cryptocurrency below the crucial $40,000 support level.
Disclosing Trading Strategies
In a recent tweet, Hayes openly shared details of his strategic move. He has obtained put options, allowing him to sell “imaginary” Bitcoin at the predetermined price before March 29th, 2024.
The premium for these options is contingent upon factors such as time until expiration, Bitcoin’s price volatility, and the perceived likelihood of it falling below $35,000. If Bitcoin drops below $40,000, Hayes can exercise the put options, capitalizing on the price difference and securing profits.
Key Market Influencers
Hayes identifies the upcoming US Treasury quarterly refunding announcement, expected by January 31st, as a pivotal factor influencing Bitcoin’s value. He expresses concern about potential indications of high interest rates, which could deter crypto investors and contribute to the anticipated decline in Bitcoin prices.
Additionally, Hayes discloses a strategic decision to liquidate his trading positions in Solana and Bonk, resulting in marginal losses.
Analysing Market Trends
Crypto analyst Ali Martinez, in an analysis covered by Coinpedia, examines Bitcoin’s historical price behavior. Martinez observes a pattern where Bitcoin tends to retreat to around half of its previous significant increases.
Martinez suggests that Bitcoin could potentially drop to $32,700, reflecting patterns seen in previous market cycles. Despite the current 20% dip, Martinez remains hopeful, seeing this as a temporary setback before Bitcoin resumes an upward trajectory.
Presently, Bitcoin’s price stands at $39,921, indicating a 3.6% drop in the last 24 hours and a 7% decrease in the last seven days.
