Forced liquidation of positions in the near future will put more pressure on the bitcoin price. This view was expressed by Arthur Hayes, the founder and former CEO of the BitMEX exchange.

On the evening of June 17, he noted the liquidation of 24,500 BTC by the Canadian Purpose Bitcoin ETF (BTCC) shortly before the trade shutdown.

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BTCC-Purpose ETF vomited 24,500 $BTC North America towards the Friday close. I’m not sure how they handle refunds but that’s a lot of physical BTC to sell in a small time frame. pic.twitter.com/BY7foKdPjY

— Arthur Hayes (@CryptoHayes) 19 June 2022

“I’m not sure how they use it, but there are a lot of physical bitcoins to sell in a short time,” the expert said.

Hayes stated that during the weekend when the fiat channels were closed, the BTC price dropped to $ 17,600 with high trading volume. After a drop of around 20%, the market has already rallied at low volume. In his view, a forced seller appears to be “inciting a run to stop losses.”

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During the weekend, with the fiat rails closed, $BTC With good volume, it fell almost 20% from Friday to $17,600. It smells like it triggered a forced seller’s stop expedition. pic.twitter.com/X01FnDw1IL

— Arthur Hayes (@CryptoHayes) 19 June 2022

“Given the poor state of risk management, Crypto lenders and overly generous terms expect more and more forced selling of BTC and ETH as the market realizes who is swimming naked,” Hayes wrote.

However, he believes this will provide sophisticated investors with an opportunity to “buy coins from those who have to sell at any price”.

Earlier, Peter Schiff, head of Euro Pacific Capital, warned that bitcoin’s return to levels above $20,000 does not mean it has bounced off the bottom. According to him, the cryptocurrency will test the level around $5,000.

Jeffrey Gundlach, head of DoubleLine Capital, said he wouldn’t be surprised if bitcoin dropped to $10,000.

In April, Hayes predicted a market crash at the end of the first half of the year. At this point, he believed that Bitcoin and Ethereum would test the $30,000 and $2,500 levels respectively.

Prices of major cryptocurrencies fell below these marks in May.
In early June, Hayes said that bitcoin, which was trading at around $30,000 at the time, had reached the bottom of the current cycle.

Recall that in 2021, the Purpose Bitcoin ETF was the first bitcoin exchange-traded fund to receive approval from the Canadian regulator.

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