BitMEX Founder Says Ethereum’s Upgrade Will Boost ETH Price

Ethereum has been making a lot of headlines lately, and this is happening for a while now ahead of the important upgrade. Here are the latest price predictions about ETH.

At the moment of writing this article, ETH is trading in the green, and the coin is priced at $1,702.

BitMEX founder Arthur Hayes said not too long ago that Ethereum’s (ETH) upcoming merge to a proof-of-stake consensus mechanism will boost its price.

In a new blog post, Hayes said the fact that he envisions Ethereum’s price rising after its upgrade despite unfriendly US dollar (USD) liquidity conditions.

He made sure to mention the fact that the Federal Reserve can continue to fight inflation via raising interest rates without hurting the markets as long as the USD Liquidity Conditions Index also rises.

Just in case you don’t know, this is a metric he created himself that tends to correlate with Bitcoin (BTC).

“If the quantity of money has a greater effect than its price on financial markets, then the Fed can raise interest rates all it wants without hurting the market – so long as the USD Liquidity Conditions Index also rises.”

Hayes’ USD Liquidity Conditions Index is measured by subtracting the total amount of reverse repo bids by the New York Federal Reserve as well as US Treasury general account balance held at the NY Fed from the Fed’s total balance sheet.

Hayes also pointed out to the fact that rocky macroeconomic conditions aren’t fazing his belief in the leading smart contract platform but notes that the price action may be smaller than he expected.

He said the following:

“I think the Merge will drive positive price movement for ETH regardless of USD liquidity conditions.”

Stay tuned for more news and make sure to check out the crypto market as well.