Ethereum, the second most prominent cryptocurrency, has gotten the attention of Bitmex founder Arthus Hayes. In his latest medium blog post, Hayes expressed bullish sentiments on ETH, saying, “MAX BIDDING Ether” and “MAX SELLING Fiat.”
He stated that, as of Thursday, Ethereum futures were grossly undervalued. For example, Hayes noted that the Deribit 31 March 2023 ETH/USD futures contract was trading at $1,587, 44% below his model future price of $2,815.
“If ETH is trading 76% cheaper than my model, I am willing to sell fiat and purchase Ether today. I get an added bonus because I will receive equal tokens from any PoW Ether fork that appears.”
The BitMex founder added that following this analysis, he purchased December 2022 options with a strike price of $3,000 as he is super bullish on the Ethereum merge. As a result, Hayes says he also has plans to add to his spot positions to maximise his ETH exposure and capitalise on lapses in market pricing.
Hayes believes that following the Ethereum merge, holders will not dump their holdings for a profit, “buy the rumour, sell the news” will not occur as the asset becomes deflationary. According to Hayes, in addition to this, the rate of deflation is expected to grow as DeFi adoption increases Ethereum use cases.
Related: “Call Out Scammers”: Ethereum Founder Charges Blockchain CEOs
More Development for Ethereum
Interestingly, Ethereum founder Vitalik Buterin stated in an interview at the just concluded EthCC that the Ethereum merge is yet to be priced in. According to Buterin, the full ramifications can only be priced in after it happens.
The merge would see Ethereum migrate from the proof-of-work (PoW) consensus system to proof-of-stake (PoS), cutting down its energy consumption and massively boosting its throughput.
The merge is now only over a month away, provided all goes well with the fork on Goerli, the final testnet. Notably, the merge on Goerli is slated to take place from tomorrow.
Despite his legal woes, Arthur Hayes remains one of the leading market analysts over the years. For example, in April, Hayes predicted that Bitcoin would eventually clinch the $1 million price.
He believes there would be a flight to stores of value as world reserve currencies weaken. According to Hayes, this process which he termed the Doom Loop, has already kicked off following dollar-euro parity.
Notably, ETH’s value increased in July, surging by over 55%. Currently, the asset is trading at $1,669, up 1.28% in the last 24 hours but down 3.35% in the previous seven days.
