Story Highlights
- Hayes sees Bitcoin sliding to $70,000 before a major rally.
- Market volatility and macroeconomic factors may influence BTC’s trajectory.
- He suspects Trump’s promised Bitcoin reserve.
Arthur Hayes, 100x and BitMEX co-founder, says Bitcoin will maintain its long-term bullish trend amid short-term sell-offs. Bitcoin will decline briefly to $70,000, he believes, before surging to a new high of $250K by 2025’s close. Hayes’s projection mirrors historical market trends. He focuses on liquidity as a decisive factor for the next large price movement of Bitcoin.
Hayes feels the pullback into the $70,000-$80,000 range is the natural correction during a bull run. He offers that although Bitcoin has already pulled back 10% to $83,000, this high may not end up being the low. Yet another drop will offer a tactical buying opportunity for those who refrain from leverage and instead prefer the spot accumulation of the cryptocurrency. Surging dollar liquidity is still a key driver that can push Bitcoin’s price to record highs. Hayes identifies March 2025 as a possible peak time.
Arthur Hayes Forecasts Bitcoin Plunge Before Big Rally
Volatility in the market is still a concern, as Hayes cautions that a steep fall in leading stock indexes such as the S&P 500 or Nasdaq 100 would set off a more severe Bitcoin correction. If the indexes decrease by 20%-30%, Bitcoin could be pulled back some more before continuing its direction. Hayes advises one to be on guard since he will accumulate Bitcoin incrementally rather than leveraging up. This measure reflects surging institutional buying of the spot market versus taking higher-risk positions.
At press time, Bitcoin was valued at $90,808, rising 8.60% over the last 24 hours with a market cap of $1.8 trillion and a trading volume of $62.14 billion.
Although optimistic about the long-term direction of Bitcoin, Hayes is uncertain about Donald Trump’s planned Bitcoin reserve. He does not believe the administration would spend significant amounts of federal money on buying Bitcoins, considering other financial needs that claim the attention of government funds.
Despite near-term fluctuations, Hayes predicts that Bitcoin will continue to climb higher, with the strategy of cautious accumulation guiding traders through market ups and downs. His analysis provides good advice for both retail and institutional investors as Bitcoin nears major support and resistance levels.
