BitMEX CEO: Hayes predicts Ethereum’s price could hit $5,000 if…

The former BitMEX boss believes that :

• the decentralized finance sector is a suitable alternative to the current financial infrastructure.
• Ethereum’s price could reach $5,000 after the merger.This would only happen if the network’s
• transition to a proof of stake is to be successful and the U.S. Fed no longer raises rates aggressively.

Mr. Hayes added that:

• Ethereum should still recover the $3,500 level without the Fed’s pivot.
• Ethereum will likely become more scarce after the merger, despite an increase in demand.
• The merger will also lead to a deflation of Ethereum.

Prior to 2020, Hayes was an avid critic of Ethereum. In 2018, he accurately predicted the digital asset’s double-digit price drop. However, he became a supporter of Ethereum after 2020.

Hayes also predicts that:

• if Ethereum’s transition to a proof-of-stake network is not successful and the Fed’s aggressive rate hikes do not abate, Ethereum will return to the “dark ages.”
• Ethereum miners are a group of Ethereum network players that can ruin the chances of a successful transition to the network PoS
• once Ethereum completes its transition to PoS, the miners’ equipment and facilities will be virtually worthless and their revenues will drop to zero.

Their only option is to find a value chain to mine that can offer them a similar marginal income as they currently enjoy on Ethereum’s proof of work (PoW). However, Hayes said he doubts this is possible given that there is no other PoW blockchain with a similar market cap to Ethereum.