Bitmex founder and CEO Arthur Hayes dismissed claims that the recent bitcoin rally was simply a short squeeze as he put forward his point for why a bitcoin peak could soon happen.
Speaking on CNBC, Mr Hayes said: “I don’t actually think we’ve seen the worst.
“I think this is a very strong rally on good volume and we definitely could see $8,000 or $9,000 and maybe just shy of $10,000.
“We’ve been here before earlier in the spring, we rallied from $5,800 to in the high $9,000 level but didn’t quite crack $10,000.
“I think similar action will happen this time and I would like to see us test $5,000 to really see if we put a bottom in it.”
Bitcoin price stood at £7,552.19 at 18:00 (BST) on Friday, according to CoinDesk. It saw its highest price before Christmas when it almost hit $20,000.
On Friday, the Indian Government began working on ways and which it will reform its policy on cryptocurrencies.
The Indian Government appear to be one step closer to a resolution, with The future of cryptocurrencies in India looks to be moving closer to resolution with Indian Quartz reporting that a finance ministry panel will suggest to regulators and the government that digital assets be treated as commodities.
Speaking about the reform, senior market analyst at eToro Mati Greenspan said: “When Prime Minister Modi made the move to remove 86% of the paper money in India on November 8th, 2016 he inadvertently handed a big win to the banking system and it seems they’re willing to do everything in their power to maintain the status quo.
“The crypto ban imposed by the Reserve Bank of India earlier this month is a clear example of this effort. Let’s hope that the judicial system sees through this today and strikes down this policy, doing what is right for the wider public now and for future generations.”
But bitcoin and other cryptocurrencies have faced criticism by banks and finance experts, with billionaire Bill Gates telling CNBC he would bet against the bitcoin and short it if he could.
The Microsoft co-founder said: “As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment.”
He added: “I agree I would short it if there was an easy way to do it.”
Former PayPal CEO Bill Harris also claimed bitcoin is the “greatest scam in history”.
Source : EXPRESS