Arthur Hayes, the former CEO of Bitmex, emphasized the potential of Ethereum to reach $10,000 by the end of 2022. But he reiterates that the market could be turbulent, especially mid-year.
In addition, Hayes also offered his opinion on Terra’s demise, which is the direct result of the Federal Reserve interest rate hikes and liquidity crises that have caused the stable coin price to crash.
Ethereum turns $10K despite volatile market
Looking at ETH’s long-term potential, Hayes is confident that the cryptocurrency can grow exponentially and reach $10,000 by the end of the year. The market might be unpredictable right now, but ETH and the rest of cryptocurrencies would bounce back into shape once the central bank slows the rate hike process.
The collapse of Terra was doomed to fail by its own programming. The Fed’s policy of tightening global central banks, which are pressing on liquidity problems, is just the tip of the iceberg.
Hayes recently explained in April why 2022 will be a spectacular year for Ethereum. He says that once the blockchain moves 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.”
He also explains that ETH is a better investment than BTC and other coins. The transition, set to take place in the summer of 2022, will be the tipping point that will propel Ethereum to the top of the game.
ETH superior to BTC
Hayes strongly believes that ETH is better than BTC, stating that “ETH is a commodity used to power the computer, not a pure monetary instrument.”
Hayes recommends that people buy Ethereum and issue ETH bonds. The logic behind this is that someone who buys ETH will automatically be identified as a DeFi or Metaverse company, increasing the share price.
With ETH soon to move to a proof-of-stake mechanism, Hayes believes ETH can boost more ESG funds and be spared regulatory issues. More people are pushing for a proof-of-stake mechanism because it is more environmentally friendly compared to the proof-of-work mechanism.
As for the increase in Ethereum price, Hayes says it may not happen in a timely manner as the overall market condition could be shaky and very volatile. The only hope is that the Fed will reconsider its actions and not put as much pressure on the crypto market.
Despite the volatility in the crypto market, Hayes believes Ethereum can reach $10,000 by the end of 2022 if the uptrend continues.