Bitcoin’s price action attracts the attention of market experts. Arthur Hayes, co-founder of BitMEX, is ringing alarm bells about the coin’s trajectory.
Hayes recently warned of a possible drop to $70,000-$75,000 in the near future. This forecast comes against a backdrop of global economic instability and changing market conditions.
A potential mini financial crisis
According to Hayes, the global financial system could experience a “mini financial crisis”. This event could force Bitcoin to evaluate reduced support levels, although it is still attractive to investors looking for a safety net from traditional financial tremors.
Hayes said a correction may be in order this fall before the sharp rise in cryptocurrencies. While his tone is cautious, his long-term outlook is still mostly positive.
Reversing the order of my triptych essay series.
The Ugly will be published tomorrow morning. I’m asking for a $70,000 to $75,000 fix $BTCa mini financial crisis and a resurgence in money printing that will get us to $250,000 by the end of the year. pic.twitter.com/wohvbKkXOf
— Arthur Hayes (@CryptoHayes) January 27, 2025
Liquidations and market reactions
The market is quite volatile. Recently, falling below the $100,000 support level, Bitcoin caused extensive liquidations worth around $854 million.
For some people in the market, these liquidations highlight the delicate balance between hope and concern in bitcoin markets. Corrections are a normal part of market cycles, but the speed and magnitude of the sell-offs show that traders are more sensitive at this time.
Divergent points of view of specialists
While Hayes predicts a significant downturn, not many analysts agree with his outlook. Georgii Verbitskii, the founder of TYMIO, perceives the current decline as a logical consequence of the prolonged uptrend.
Verbitskii suggests that the market could experience a more moderate decline, with Bitcoin settling at around $87,000 instead of falling to $75,000.
The potential future of Bitcoin
Despite the warning, Hayes remains optimistic about Bitcoin’s future. He believes Bitcoin could reach $250,000 by the end of 2025 as central banks around the world ease monetary policies. This view reflects a common belief among cryptocurrency fans that digital assets will thrive as the global economy changes.
According to Coingecko, Bitcoin traded at $99,242, showing a decline of 5.1% in the last 24 hours and 7.5% in the last week. The asset’s path remains unpredictable, oscillating between calm and chaos. Whether Hayes’ prediction of a $75,000 drop comes to fruition or not, Bitcoin continues to fascinate investors everywhere.
Featured image from DALL-E, chart from TradingView