Bitcoin (BTC) Has Been on a Rollercoaster Ride, Recently Hitting a Four-Month Low of $70,000, Triggering Concerns Among Investors.

Bitcoin (BTC) has been on a rollercoaster ride, recently hitting a four-month low of $76,606, triggering concerns among investors. However, Arthur Hayes, the crypto entrepreneur and former CEO of BitMEX, remains optimistic about Bitcoin's long-term trajectory. According to Hayes, Bitcoin is likely to bottom out around $70,000, marking a 36% correction from its latest all-time high (ATH) of $108,786. He reassures investors that such corrections are normal in bull markets.

Crypto entrepreneur and former BitMEX CEO Arthur Hayes remains optimistic about Bitcoin's long-term trajectory despite the recent price downturn and concerns among investors.

According to Hayes, Bitcoin is likely to bottom out around $70,000, marking a 36% correction from its latest all-time high (ATH) of $108,786. Such corrections are normal in bull markets, and Bitcoin has typically seen even larger pullbacks in previous bull cycles. For instance, Bitcoin dropped by 73% from its 2017 ATH to reach a low of $3,000 in early 2019.

"We are in a bull market, and bull markets correct. 36% off of an ATH is not a lot in the grand scheme of things. In previous bull markets, Bitcoin has seen much larger pullbacks before continuing to new highs. For example, Bitcoin dropped by 73% from its 2017 ATH to reach a low of $3,000 in early 2019," Hayes noted.

Bitcoin's latest decline has been fueled by economic uncertainty and recession fears. The S&P 500 (SPX) has dropped nearly 8% in the past month, reflecting a broader market downturn. Additionally, Polymarket, a blockchain-based predictions platform, estimates a 39% chance of a US recession in 2025, a sharp increase from 23% in late February.

However, Hayes urges crypto investors to remain patient, arguing that $70,000 will serve as a strong support level.

"I think crypto traders can deploy more capital after we see what the Fed does. If they introduce QE, then we could see BTC do another parabolic run. My prediction is that Bitcoin will likely find support around $70,000. This price level aligns well with historical trends in bull markets, where we typically see significant pullbacks before the uptrend continues."

Those who missed out on Bitcoin's parabolic move in the first half of 2024 could have another chance to participate if Bitcoin indeed bounces off the $70,000 support.

"If we do see Bitcoin stabilize around $70,000 and hold that level, then I think we could see a decent altcoin season. But if Bitcoin breaks down further and touches the $50,000 region, then we might see another leg lower in altcoins."

As Bitcoin approaches the critical $70,000 support, investors will be closely watching to see if this level holds or if Bitcoin experiences further downside pressure.