In the last 24 hours, Bitcoin (BTC) has seen a sharp decline, with its price dropping by 6.90%, now sitting at $94,184. This drop triggered massive
Bitcoin (BTC) has seen a sharp decline in the last 24 hours, with its price dropping by 6.90%, now sitting at $94,184. This drop triggered massive liquidations, with $406.73 million in Bitcoin positions wiped out, part of a broader $2.21 billion total market liquidation.
As a result, market sentiment has shifted. The Fear & Greed Index currently sits at 39, indicating widespread fear among investors. Bitcoin’s dominance remains strong at 61.57%, while Ethereum follows at 9.94%, as market participants navigate the ongoing turbulence in the crypto space.
Why the Bitcoin Price Could Hit $75,000
CIO of Maelstrom and analyst Arthur Hayes predicts Bitcoin will hit $75,000 before reaching $250,000. Economic factors might be contributing to the volatility, which he expects to result in Bitcoin temporarily dipping to $75,000. This dip will happen because after Trump’s election, Bitcoin’s price surged ahead of global economic trends, largely driven by liquidity. However, according to Hayes, the liquidity situation hasn’t met expectations, contributing to the recent dip.
Additionally, Hayes points to the Federal Reserve’s actions, such as cutting interest rates in 2022, which influenced global markets and Bitcoin’s price. These factors are fueling volatility, with Hayes expecting a temporary drop to $75,000 before Bitcoin climbs to $250,000.
Why Bitcoin’s Price Could Reach $250,000 and Beyond
He believes Bitcoin will eventually hit $250,000 due to massive credit creation by major economies. The U.S. plans to print trillions of dollars, and other countries like China, Japan, and Europe are doing the same to stimulate their economies. This could lead to inflation, making hard assets like Bitcoin more valuable.
Apart from Hayes, there are other experts who echo this sentiment, expecting Bitcoin’s price to rise significantly, with some even predicting it could reach $1 million in the future. With global economic shifts, holding Bitcoin is seen as a way to protect against growing financial risks.
