According to former BitMEX CEO Arthur Hayes, the leading cryptocurrency is expected to drop below $40,000 and continue its decline until January 31, when the US Treasury reveals its quarterly borrowing plan.
Hayes has adopted a strategy to buy March put options with a $35,000 exercise price due to the current heavy liquidity in the financial system.
He also pointed out that since the launch of the US ETF, both the S&P 500 and Bitcoin have stopped growing together, and this could be a sign of potential problems ahead.
However, MN Trading founder Michael van de Poppe sees the current correction as a normal market movement and advises investors to buy on dips.
