Arthur Hayes predicts Bitcoin correction to $70k amid 'mini financial crisis'
The markets started the week with a strong pullback
Bitcoin’s recent price fluctuations have sparked concerns, with Arthur Hayes, the former CEO of BitMEX, predicting a significant correction in the cryptocurrency’s value.
Hayes warned of a looming "mini financial crisis" that could lead to a drop in Bitcoin's price to the $70K–$75K range.
Key takeaways
- Bitcoin drops below $100K for the first time since January 20.
- Market sees 8% decline in tandem with Bitcoin’s 5.5% fall.
- Hayes warns of financial instability leading to further Bitcoin price corrections.
Hayes' warning
Bitcoin’s recent downturn has been notable, with the leading cryptocurrency falling nearly 5.5% in a single day. For the first time since President Donald Trump's inauguration on January 20, Bitcoin fell below the critical $100K support level, triggering widespread liquidation across the crypto market. During this period, the broader market also saw a decline of 8%.
BTC price dynamics. Source: СoinGecko
Arthur Hayes, former CEO of BitMEX, has issued a bold prediction regarding Bitcoin's future trajectory. In a post on January 27, 2025, Hayes forecasted a short-term correction for Bitcoin, expecting the cryptocurrency to drop to the $70K–$75K range. He attributed this potential decline to what he described as a "mini financial crisis" that could cause widespread financial instability.
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However, Hayes also hinted at a significant recovery afterward. He anticipates that this financial crisis will lead to a resumption of money printing by central banks, ultimately fueling a rally that could propel Bitcoin to $250K by the end of the year. Hayes' prediction suggests that while the immediate future may involve some downturn, the long-term outlook remains optimistic, with Bitcoin expected to reach new highs once the global financial system responds with further monetary stimulus.
The markets started the week with a strong pullback, which is attributed to the success of Chinese AI app DeepSeek, which caused a shock in the tech and crypto space by competing with the U.S. ChatGPT.
DeepSeek skyrocketed to the top of the Apple App Store's free app rankings, all on a modest $10 million budget.Analysts believe that the launch of DeepSeek spooked traders, which led to the recent crash.
This perspective aligns with his broader view that economic turmoil often leads to increased demand for Bitcoin as a hedge against inflation and devaluation of traditional currencies.
Prospects for Bitcoin and the crypto market
As the crypto market grapples with these challenges, the $70K–$75K range becomes a critical level for Bitcoin. If the correction predicted by Hayes materializes, it could mark a pivotal moment for Bitcoin’s future trajectory. Investors will need to stay informed and ready for potential shifts as the market adjusts to these broader financial realities.
In addition, we have previously reported Bitcoin price tumbles 5%, triggers $600m liquidations in 12 hours.
