Tech rout may drag Bitcoin to $30,000

Tech rout may drag Bitcoin to $30,000

Stocks















Bloomberg

Bitcoin’s tendency to move in tandem with technology stocks means the biggest cryptocurrency may slump to $30,000 by June, according to Arthur Hayes, the co-founder of crypto trading platform BitMEX.

Hayes, in a blog post on Monday, also said the same dynamic could drive Ether to $2,500. The tokens traded at around $42,300 and $3,180, respectively, at 12:43 pm in Hong Kong. Hayes said he’s buying “crash” puts expiring in June on both coins, while pointing out that’s he’s overall in a “long crypto position.”

Expectations for a series of interest rate increases by the Federal Reserve in coming months have weighed on crypto and tech stocks recently, with the Nasdaq 100 Index losing 3.6% last week and Bitcoin briefly dipping below $42,000 on Monday. The Fed may need to hike interest rates above 4%, Goldman Sachs Group Inc Chief Economist Jan Hatzius said.

Bitcoin’s 90-day correlation with the Nasdaq 100 is at a record, undermining the token’s appeal as an instrument for diversification. The combination of weakening global growth and less accommodative central banks will weigh on tech stocks, and by extension, crypto, Hayes said. He acknowledged