Arthur Hayes, the former CEO of BitMEX, has issued a warning of a potential market downturn for Bitcoin following disappointing U.S. Non-Farm Payrolls (NFP) data, even as he maintains a bullish stance on the asset’s long-term prospects.
Market reaction to NFP report
The recent NFP report triggered a sharp sell-off in both traditional and bitcoin markets.
Hayes highlighted that risk assets, including Bitcoin, faced significant volatility as traders adjusted their expectations for Federal Reserve policy.
Over $1.1 trillion was wiped from the U.S. stock market, and bitcoin long positions worth $172 million were liquidated across exchanges in just 24 hours, as the price slipped below $114,000 in early August after peaking above $120,000 in July.
Bitcoin’s performance versus other assets
Despite leading the downturn, Bitcoin showed relative strength compared to altcoins.
Noted critic Peter Schiff took the opportunity to critique bitcoin’s safe haven status, stating:
“Days like today make it clear that Bitcoin is not digital gold. We got bad economic news that sent gold and the Japanese yen up 2.2% and the euro up 1.5%. The NASDAQ went the other way, falling 2.2%. Bitcoin tanked 3%, tracking high-risk assets lower, not safe havens higher.”
