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Bitcoin bottomed as ‘everyone who could go bankrupt has gone bankrupt’

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Arthur Hayes, former CEO of crypto derivatives platform BitMEX, thinks Bitcoin’s worst may be over (Bitcoin) this cycle because the biggest, most irresponsible entity ran out of BTC for sale.

“In the future, almost everyone who could go bankrupt has gone bankrupt,” he said on Dec. 11. interview With crypto advocate and podcaster Scott Melker.

Hayes said that when centralized lending companies (CELs) are in financial trouble, they often call the loan first, then sell BTC first. This is because it serves as a crypto reserve asset and the most pristine and most liquid asset.

If you look at the balance sheets of any of these heroes, there is no bitcoin because what are they doing, they sold bitcoin when they went bankrupt.During the wave before bankruptcy I sold bitcoin to

Hayes made similar allegations in a December 10 blog post. PositionDuring this ongoing credit crisis, massive physical sales of BTC took place on exchanges, both from CEL, which is trying to avoid bankruptcy, and from trading houses, whose loans have been collected and must liquidate their positions. It is explained that

This is why the price of Bitcoin crashes before CEL goes bankrupt. Its a big move, he said.

While we cannot prove that all the bitcoins held by these failed financial institutions were sold during the multiple crashes, the most liquid cryptocurrency collateral possible just prior to bankruptcy was It looks as if they did their best to liquidate the

Hayes believes the large-scale liquidation is over, explaining in a blog post, “There is no reason for you to hold out if there is an urgent need for fiat currency.”

Related: Hong Kong could be key to China’s crypto revival Arthur Hayes

Followed by The collapse of the virtual currency exchange FTXand then Fallout, the market is still deep crypto winter gripbut Hayes believes the market could recover somewhat in 2023.

I believe the U.S. Treasury market will crumble at some point in 2023 due to the Feds tightening policy, he said. We expect a boom shaka after that. laka Bitcoin and all other risk assets will surge.