Crypto now primed for a powder keg that could wreak havoc with the price of Bitcoin and Ethereum

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BitcoinBTC, Ethereum, and crypto prices have been trading sideways for months (though the CEO of a major crypto firm thinks that might be about to change).

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The price of bitcoin has fallen from year-to-date highs of just over $30,000 per bitcoin, with the price of ethereum falling with it, although excitement over a possible end of Ripple’s long legal battle helped XRP break out.

Now, after analysts at JPMorgan issued a stark $1.1 trillion warning, former bitcoin and crypto exchange Bitmex chief executive Arthur Hayes has predicted a market “powder keg” of crypto could explode as early as this year.

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“You’re setting up this powder keg of a situation that’s going to explode in [the third and fourth quarter] this year, and I think ultimately it’s going to be good for bitcoin,” Hayes, who now runs a family office called Maelstrom, told the What Bitcoin Did podcast. “It’s going to be quite volatile on the upside and on the decline.”

Bitcoin, Ethereum and Other Major Cryptocurrencies Applauded US President Joe Biden’s Debt Ceiling Agreement; However, analysts at JPMorgan warned last week that the crypto and equity markets are now watching nervously what will happen when the US Treasury tries to fill its coffers.

Hayes, who was sentenced to two years probation last year after pleading guilty to charges of failing to implement an anti-money laundering (AML) program at Bitmex, highlighted the crisis banking this year and expectations that the US government will issue just over $1 trillion. into new Treasuries in the coming months, potentially sucking hundreds of billions of dollars from the market, as contributing to the “powder keg”.

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Next year, bitcoin will experience its fourth supply halving and Hayes expects the price of bitcoin to rise thereafter, as it has done previously.

“I don’t think we’ll hit $70,000 this year, I think next year is when we break through that barrier, then we’ll get the upper hand [2025], [2026] then his Armageddon,” Hayes said, referring to a significant societal upheaval such as a major war that could cause mass panic and a sell-off of all assets, including bitcoin, ethereum and crypto.

“It doesn’t have to be too simple, we just have this situation, we have this powder keg of too much money, no trust and people trying to make a living,” Hayes added.

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I am a journalist with significant experience covering technology, finance, economics and business worldwide. As founding editor of Verdict.co.uk, I reported on how technology is changing business, political trends and the latest cultures and lifestyles. I have covered the rise of bitcoin and cryptocurrency since 2012 and traced its emergence as a niche technology in the greatest threat to the established financial system the world has ever seen and new technology the more important since the Internet itself. I’ve worked and written for CityAM, the Financial Times, and the New Statesman, among others. Follow me on Twitter @billybambrough or email me at billyATbillybambrough.com. Disclosure: I occasionally hold a small amount of bitcoin and other cryptocurrencies.

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