Former BitMEX CEO Arthur Hayes says “pockets of forced selling” of Bitcoin (BTC) and Ethereum (ETH) could cause the crypto market to dip again in the near future.
Hayes notes that Canada’s Purpose BTC exchange-traded fund (ETF) sold off a staggering 24,500 Bitcoin on Friday.
“I’m not sure how they execute redemptions but that’s a lot of physical BTC to sell in a small time frame. Over the weekend, while the fiat rails are closed, BTC dropped to a low of $17,600 down almost 20% from Friday on good volume. Smells like a forced seller triggered run-on stops.”
Bitcoin is trading for $20,474 at time of writing. Hayes says the market quickly rallied on low volume after sellers dumped their holdings.