|May 15, 2018 03:05 PM||By: John Patrick Mullin | 3981 Views|
BitMEX CEO Arthur Hayes has obtained a big Bitcoin prediction of $50,000 by the end of the year, but it is the overall volatility that excites him
Arthur Hayes, the CEO of BitMEX, a Bitcoin mercantile trading platform, had divined Bitcoin price to transfer $50,000 by the end of the year. But, he isn’t too embarrassed if it hits that or not, preferably showing his interest in the volatility that Bitcoin effects to the trading markets.
Volatility is something that several investors and financial institutions require to see the back off when it appears to Bitcoin’s price, but for Hayes and BitMEX, it is necessary and part of what gives the digital currency so appealing to traders.
Bitcoin has understood the headlines since it earned its big break into the mainstream because of its ups and downs, which are unusual in any asset class. But, the flipside is that many believe its adoption is slowing as the precipitous drops scare off investors.
For Hayes, his forecast is $50,000, but he said CNBC's Melissa Lee that he does not care if it reaches that or not, he just needs the volatile rollercoaster to stay.
“I am a volatility trader at the end of the day,” Hayes stated. “We make our money if it is volatile. If it moves up or it goes down if you have Bill Gates declaring it a fraud, then short it- I don’t care. Or, if you believe it is going to be one mln dollars in several months, great! Buy it, still don’t care, we simply match trades.”
This is viewed as positive news for most traditional investors, as the dangerous nature and the convenience of the digital currency means that investors can enter and exit the market very suddenly and easily.
A slowing of volatility this suggests that those investors who are still rude of the losses they could encounter after gratefully accepting the gains, will not transmit the asset in a hurry.
But, without the volatility that has been seen therefore far, the same volatility that also saw Bitcoin more than an increase in price in a matter of weeks to $20,000 last December, several investors would not be involved in the digital currency- including Hayes.