The former CEO and the co-founder of BitMEX – a crypto derivatives exchange, Arthur Hayes spoke recently on the current situation in the crypto space and when exactly he feels it is comfortable to buy more Bitcoin (BTC) and Ethereum (ETH).

In a blog post that was published on the same day, Arthur said; The meltdown experienced this week is just abnormal, it became worse when the Luna Foundation was forced to sell all their BTC holdings just to defend the $1 peg of the UST/USD pair. Even at the forced selling, they still failed. This is because most pegs fail when exposed to market entropy.

The former CEO said he sold all the BTC and Ether put positions he opened in June which are worth $30,000 and $2,500 respectively. He further added that he is mainly trading for fun and he has made no alteration to the structure he has for his long positions on crypto, and this is despite the fact that the market is losing value when compared to fiat.

Arthur Hayes said he is not expecting the market to smash his expectations so soon and that the present meltdown in the crypto market can be attributed to the rates raised to 50bps by the Fed recently. He added that even though the 50bps rate is expected, the market is not built to handle the rising nominal rates.

“The Consumer Price Index (CPI) in the US for April is 8.3% YoY and it is quite lower than the previous measurement of 8.5% YoY. However, it is still difficult to handle the 8.3% and even if the Fed activates its firefighting mode, handling inflation will still be unrealistic,” says Hayes.

First, he advised that people should avoid any service that is offering a yield above the recognized average because it will expose them to the crypto melodrama. The problem, according to him, is that people do not take their time to read about the operations of the protocol and as such in any distress moment, their go-to action is to sell.

He added that people should give the crypto capital market time to heal after the ongoing plunge in the market and considering the possibilities of still having more money printing, he is going to close his eyes and “trust the Lord.” However, he said he will buy the two assets when it gets to $20,000 and $1,300 respectively. This is because the levels are synonymous with the ATHs from the bull run in 2017/2018.