Bitcoin (BTC) Price Crash? Arthur Hayes Predicts March Meltdown

Worries about a recession sent markets tumbling, hitting both stocks and crypto. On Black Monday, U.S. stock indices took a dive: the Dow shed 2%, the S&P 500 dropped 2.7%, and the Nasdaq nosedived 4%.

Worries about a looming recession and jitters in the U.S. political climate saw markets tumbling on Monday, dragging both stocks and crypto into the red.

On Black Monday, U.S. stock indices took a dive: the Dow shed 2%, the S&P 500 dropped 2.7%, and the Nasdaq nosedived 4%.

Major firms like Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL) took a beating, with Tesla falling sharply by 15.4%. At the same time, Bitcoin slipped below the $80,000 mark for the second time in three weeks, rattling investor nerves.

Hayes’s Bitcoin Prediction Looks More Likely

Arthur Hayes, the co-founder of BitMEX, has been flagging potential market corrections, especially for Bitcoin, for some time now.

Hayes had previously suggested that Bitcoin might drop to $75,000, a prediction that seems to be coming true. Recent reports show that Bitcoin touched a low of $81,380, getting closer to Hayes’s predicted price level.

In his latest comments, Hayes further stated that Bitcoin could fall even lower if it manages to hit the $75,000 mark. He also highlighted open interest around that price level as a key indicator, suggesting that it could signal growing bearish sentiment in the market.

“I think if we can get to $75,000 on good volume—not like a brief touch and a rebound—and we close at $75,000, then we might get another leg down to $60,000. My year-end Bitcoin price target is still $120,000. I think we’ll hit $150,000 in early 2024 as a high, and then we’ll have another leg down to $60,000 by year-end 2024,” Hayes said.

Economic Jitters, Political Climate Fuel Market Slide

The market downturn is being fueled by concerns over the U.S. economy. Treasury Secretary Scott Bessent recently warned of a potential “detox period” as the new administration focuses on cutting government spending.

“We’re in the midst of a detox period in terms of the hangover from the pandemic-era spending and the urgency to reduce the deficit,” Bessent said in an interview with the Financial Times.

Furthermore, U.S. President Trump stated that the economy is going through a “transition period,” which could add to the uncertainty in the minds of investors.

“The economy is going through a transition period, and I think the president is signaling that he's aware of the need for change,” Trump said in a post on X, formerly known as Twitter.

In a gloomy assessment, Goldman Sachs lowered its U.S. growth forecast for 2023, citing risks from new tariffs and a slower-than-expected recovery in equipment investment.

Meanwhile, New York Federal Reserve data showed inflation expectations slipping to 3.13% in August, an increase from the previous month's reading of 2.98%. This signals persisting worries about the U.S. economic outlook.

Bitcoin Failing to Break Free from Traditional Markets

On the other hand, Bitcoin's continued decline underscores its struggle to decouple from traditional asset markets.

Mintology CEO Zach Burks pointed out that Bitcoin, which was once considered a safe haven, is now being viewed as a high-risk asset. This shift in perception has implications for Bitcoin's price movements.

However, technical indicators suggest that Bitcoin may be nearing a short-term rebound. The RSI, currently at 37.60, is approaching the oversold zone of 30, which could signal a possible price reversal.

Moreover, the MACD remains negative, confirming bearish momentum in the market. Still, if buying pressure picks up, these indicators could signal a trend change, possibly leading to a recovery in the coming weeks. Nonetheless, only time will tell if this rebound is imminent or if Bitcoin has more downside potential to explore.