Arthur Hayes at BitMEX used to lead the company when he predicted Bitcoin would reach as low as $70,000 before achieving its powerful upward trend. According to him, the market currently matches the conditions that existed during the late parts of 2021, right before a significant market adjustment occurred. Although he voices short-term uncertainties about Bitcoin, he maintains strong beliefs that BTC will reach $250,000 by 2025.
Bitcoin Faces a Potential Pullback Before a Strong Surge
Hayes identifies lower liquidity as the primary reason behind possible market downturns after central banks reduce their money-printing mechanisms. He identifies central banks from the US, China, and Japan as key contributors to this shift that could result in Bitcoin facing price pressure. According to his perspective, the natural course of the ongoing bull market would include this price decline.
His analysis indicates a price drop for Bitcoin to $70,000 to $75,000 which should precede its continued upward movement. Bitcoin’s high level of volatility results in severe price swings throughout bullish market periods. Maelstrom stands as a defensive fund under his direction while he waits to acquire assets during market price decreases.
Market optimism shows no signs of fading which means a potential price drop might become more intense. According to Hayes such price drops may bring severe discomfort to traders who enter the market with optimistic Bitcoin predictions. According to his perspective, investors gain an opportunity to purchase assets at lower prices through the accumulation of capital after market stabilization.
Hayes Predicts Bitcoin Dip Before Major Rally
Hayes highlights Bitcoin’s short-term sensitivity to macroeconomic conditions despite its long-term independence from traditional assets. He points out that Bitcoin can react strongly to changes in interest rates and liquidity conditions. This correlation could lead to increased volatility as economic uncertainty continues.
He references past bull cycles, explaining that 30% corrections are shared before the market resumes its uptrend. His experience trading Bitcoin over the past decade informs his view that the market follows a pattern of sharp dips followed by explosive growth. He remains bullish in the long run but expects patience to be necessary for navigating near-term price swings.
Hayes notes that external factors, such as China’s Deepseek AI development, have contributed to market anxiety. He suggests that traders reassess their expectations as optimism begins to wane. While he anticipates short-term turbulence, he sees it as a setup for a major rally later in the year.
Technical Analysis Indicates Key Resistance and Support Levels
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The 4-hour Bitcoin price data shows a significant price recovery. Prices reached the 50% Fibonacci level at $98,611 before rebounding sharply. The speedy V-shaped price increase recovered Bitcoin to above $105,000, after which prices demonstrated strong bullish momentum. Bitcoin moves toward an essential resistance area from $107,000 to $108,000.
Bitcoin shows potential to continue ascending from its current $110,000 target up to $112,000 before reaching its maximum value of $118,666 based on Fibonacci projections. Technical measurements indicate a positive trend because both the 20 and 50 EMA lines produce a bullish crossover pattern. The RSI indicator shows the market demand for Bitcoin by moving into overbought territory.
The price of Bitcoin might retreat to uphold support at $103,393 and maintain a possible recovery point at $100,557 in case it does not surpass resistance. According to Hayes, a price correction will probably occur before Bitcoin launches its subsequent major price increase. People tracking Bitcoin markets observe whether Bitcoin will keep its current value momentum before potential price drops occur.
According to Hayes, financial distress triggering central bank flexibility will cause Bitcoin prices to rise again. Bitcoin may experience further growth as he foresees the U.S. Federal Reserve implementing rate cuts and a new round of quantitative easing programs. According to his recommendation,n traders should maintain their patience and be prepared for market instability before the next major rally.
FAQs
Why does Arthur Hayes think Bitcoin will drop to $70,000?
Hayes believes tightening liquidity from central banks will pressure Bitcoin, leading to a short-term correction before a rally.
Does Hayes think Bitcoin will still go up in 2025?
Yes, he predicts Bitcoin could reach $250,000 by the end of 2025 after a possible market correction.
What does Hayes say about Bitcoin’s volatility?
He explains that Bitcoin often sees 30% corrections during bull markets before continuing to rise.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
