Arthur Hayes Says Crypto Crash Isn’t Over, Sees Second Wave Coming As “TradFi Over-Leveraged Muppets’’ Surface

BitMEX
co-founder


Arthur
Hayes

said
the
crypto
market
crash
isn’t
over
yet
and
warned
of
an
impending
second
wave
as
“TradFi
over-leveraged
muppets”
start
to
surface.

If
there
is
going
to
be
a
bailout,
the
market
“needs
to
deliver
more
pain
by
Fri,”
he
wrote
in
an
Aug.
6


post on
X.
“Enjoy
the
respite
for
the
war
shall
continue,”
he
warned.

BTC
And
ETH
Unable
To
Erase
Weekly
Losses

The
warning
from
Arthur
Hayes
comes
as
markets
recover
from
a
battering
on
Monday.
The


Nikkei
225

index
soared
more
than
10%
in
the
last
24
hours
after
it
fell
12%
during
yesterday’s
trading
session.

Similarly,
the
crypto
market
cap
rose
over
9%
to
about
$1.9
trillion
in
the
past
24
hours.

Crypto
market
leaders
Bitcoin
(BTC)
and
Ethereum
(ETH)
were
able
to
climb
more
than
9%
and
12%,
respectively,
in
the
last
24
hours.
ETH
bounced
back
after
a
7-month
low
yesterday,
while
the
flagship
crypto
reclaimed
the
$55K
support
after
briefly
falling
below
$50K
on
August
5.

However,
BTC
and
ETH’s
gains
were
not
enough
to
push
their
weekly
performances
out
of
the
red.
Bitcoin’s
price
was
still
down
over
16%
on
the
longer-term
timeframe,
while
Ethereum
was
down
more
than
24%
over
the
past
7
days.

ARK
Invest
CEO
Just
As
Cautious
As
Arthur
Hayes

Arthur
Hayes
is
not
the
only
influential
figure
warning
about
risk
in
the
markets
after
yesterday’s
bloodbath.


Ark
Invest

CEO
Cathie
Wood
noted
in
an
Aug.
6
thread
on
X
that
the
Equity
Volatility
Index
(VIX)
recently
shot
up
to
65,
its
fourth-highest
level
in
40
years.

After
I
recorded
“ITK”
on
Friday,
today
the
VIX
(Equity
Volatility
Index)
shot
up
to
65,
the
fourth
highest
level
in
the
past
40
years:
after
“portfolio
insurance”
failed
on
Black
Monday
in
October
1987,
Lehman
went
under
in
2008,
and
COVID
hit
in
2020.
What
does
this
move
mean?

https://t.co/5upiKbuiWd

—
Cathie
Wood
(@CathieDWood)

August
6,
2024

Wood
said
that
the
only
periods
the
index
has
been
higher
were
during
Black
Monday
in
October
1987,
the
collapse
of
Lehman
Brothers
in
2008,
and
when
COVID
hit
in
2020.

The
high
VIX
reading
indicates
investors
anticipate
extreme
volatility
in
the
coming
30
days.

Looking
For
Safe
Havens
Amid
The
Turbulence

Presale
meme
coins
that
are
not
yet
at
the
mercy
of
the
open
market
could
be
one
option
for
crypto
investors
looking
for
shelter
from
this
potential
storm. 

Among
analyst
favorites
right
now
are
the
layer-2
meme
coin


Pepe
Unchained
(PEPU),

Base
chain
token


Base
Dawgz
(DAWGZ)

and
the
P2E
project

PlayDoge
(PLAY).

PEPU
has
already
raised
more
than
$7.4
million
and
is
offering
presale
buyers
a
267%
APY,
while
PLAY
has
moved
to
within
a
whisker
of
$6
million
raised
as
it
revitalizes
the
viral
Tamagotchi
game
that
was
a
90s
sensation.

Base
Dawgz
aims
to
challenge
the
dominance
of
the
meme
coin
Brett
on
the
Base
blockchain
and
is
offering
investors
at
this
early
stage
a
956%
annual
return
if
they
stake
their
tokens.

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