Former CEO of the renowned crypto exchange and derivative trading platform BitMEX, Arthur Hayes, recently predicted that Ethereum will reach $5,000 by the end of the first quarter of 2023.
In the remaining months of 2022, Ethereum is expected to generate a higher return than Bitcoin, as the co-founder revealed in his most recent blog post. His projection is based on the assumption that the Federal Reserve would “pivot” and that the Merge upgrade will succeed, both of which will increase the value of the world’s largest altcoin.
The Merge, in his opinion, is a momentous event for Ethereum that “will have an incredibly powerful impact on the price of ETH,” even though a Fed flip would probably have a bullish impact on the pricing of other assets.
For months, the Federal Reserve has maintained a harsh monetary stance in an effort to control record-high global inflation. Its actions have significantly fueled a selloff in both the equity and cryptocurrency markets.
In order to maintain the health of the economy, Hayes predicts that the Fed will soon reverse this approach and restart money printing.
After recording negative GDP growth in two consecutive quarters, the economy has already entered a recession despite low unemployment. Additionally, Americans now view the health of the economy even more gloomy than they did during the covid epidemic.
Ethereum seems to be witnessing The Merge soon
Technical issues have caused The Merge to be pushed back for years, but developers are now optimistic that it will happen by September 19th.
Hayes agrees that this time is genuine since Ethereum miners are starting to worry about its reality. In fact, the former CEO asserted that he had contacted a number of individuals in the Chinese Ethereum mining community who are organizing a hard fork that keeps using proof of work. Hayes argued:
“Miners would not embark on this journey and spend valuable political capital within the community if they did not believe the merge would happen on schedule(ish).”