Arthur Hayes Forecasts Bitcoin Shake-Up: Is a $70K Correction on the Horizon?

Arthur Hayes, BitMEX's former CEO warned that Bitcoin can correct to its lowest price which falls between $70,000 and $75,000. This is because the fears of a possible mini-financial crisis are presently being fueled because of the existing tightening global conditions of liquidity.

Short-Term Outlook

Bitcoin will greatly drop in the short run. This is according to Hayes, describing such a possible drop because of the current economic landscape that still retains overextended bullish sentiment.

Long-term Bullish

Even though he expected a short-term bear run for Hayes, in the long run, the whole view toward the prospects of Bitcoin is more optimistic. It means that according to him after such correction Bitcoin would rise up to $250,000 by the end of 2025, considering again the renewed bout of money printing.

Reasons for Falling

According to Hayes, some of the reasons that could trigger the anticipated correction include the central banks' monetary policies that have tightened up, higher U.S. Treasury yields, and a re-assessment of market conditions following the recent volatility.

Historical Analogy and Comparisons

He likens the present market situation with the scenario existing before the crypto crash in 2021. Such over-optimism has been seen historically, which would lead to a sharp correction in prices, he believes.

Investor Strategy Recommendations

With these predictions, Hayes advises investors to prepare for the volatility of the market. However, he does provide defensive strategy thinking while maintaining a long-term view of Bitcoin's recovery and growth prospects.

Current Market Situation

At present, Bitcoin is trading at around $104,709, which shows a slight fall amid this challenging market scenario. Investors are advised to keep an eye open as the market changes.