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<p>The post <a href="https://coinpedia.org/news/former-bitmex-ceo-places-bearish-bet-on-bitcoin-expects-dip-below-40k/" rel="noopener noreferrer nofollow">Former BitMEX CEO Places Bearish Bet On Bitcoin, Expects Dip Below $40k</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>BitMEX CEO Arthur Hayes has strategically entered the market by acquiring put options with a strike price set at $35,000. With the cryptocurrency already facing selling pressure, Hayes foresees a potential 10-15% decline, driving the price below the crucial $40,000 support level.</p>
<h2 class="wp-block-heading" id="h-arthur-hayes-put-call-nbsp">Arthur Hayes’ Put Call&nbsp;</h2>
<p>BitMEX CEO Arthur Hayes has publicly <a href="https://twitter.com/CryptoHayes/status/1749376713446809808" rel="noopener noreferrer nofollow">disclosed his strategic</a> move in a recent tweet post. Hayes has acquired put options with a strike price set at $35,000. Meanwhile, these financial contracts grant him the right to sell “imaginary” Bitcoin at the predetermined price before March 29th, 2024.</p>
<p>Although the premium paid for these options depends on factors such as time remaining until expiration, Bitcoin’s price volatility, and the perceived likelihood of it falling below $35,000.&nbsp;</p>
<p>If Bitcoin breaks below $40,000, Hayes can exercise the put options, making a profit on the price difference.</p>
<h2 class="wp-block-heading" id="h-u-s-quarterly-refunding-announcement">U.S. Quarterly Refunding Announcement</h2>
<p>Hayes points to the <a href="https://home.treasury.gov/policy-issues/financing-the-government/quarterly-refunding/most-recent-quarterly-refunding-documents" rel="noopener noreferrer nofollow">upcoming US Treasury quarterly refunding announcement</a>, expected by January 31st, as a pivotal factor in influencing Bitcoin’s value. Expressing concern over the potential indication of high interest rates by the Treasury, Hayes believes this could deter crypto investors, contributing to the anticipated decline in Bitcoin prices.</p>
<p>Furthermore, he disclosed a strategic decision to liquidate his trading positions in Solana and Bonk, incurring a marginal loss.</p>
<h2 class="wp-block-heading" id="h-ali-martinez-revealed-historical-trends">Ali Martinez Revealed Historical Trends</h2>
<p>In a recent analysis <a href="https://coinpedia.org/news/analyst-says-btcs-price-could-fall-to-32700-a-drop-of-over-16/" rel="noopener noreferrer nofollow">covered by Coinpedia</a>, crypto analyst Ali Martinez examined Bitcoin’s historical price behavior. Martinez observed a pattern where Bitcoin tends to retreat to around half of its previous significant increases.&nbsp;</p>
<p>Currently, he suggests Bitcoin could potentially drop to $32,700, indicating a pattern seen in previous market cycles. Even though Bitcoin is going down a bit now (about 20%), Martinez is still hopeful.&nbsp;</p>
<p>He believes this drop might just be a temporary problem before Bitcoin starts going up again. As of now, Bitcoin’s price is <a href="https://markets.coinpedia.org/bitcoin/?_gl=1*18v2y5o*_ga*NTQzNDc3MzQ4LjE2OTcxODMzODc.*_ga_RE1GG3FGQW*MTcwNjA3NDQwOC44My4xLjE3MDYwODI3NTQuMC4wLjA." rel="noopener noreferrer nofollow">at $39,921</a>, which is a 3.6% drop in the last 24 hours and a 7% drop in the last seven days.</p>

Former BitMEX CEO Places Bearish Bet On Bitcoin, Expects Dip Below $40k

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