BitMEX Co-Founder Arthur Hayes Believes Bitcoin (BTC) Could Drop to $70,000 Before Rallying to New All-Time Highs

Arthur Hayes, the co-founder of BitMEX, believes Bitcoin (BTC) could drop to $70,000 before rallying to new highs. He sees this as a standard bull market correction.

Arthur Hayes, the co-founder of BitMEX, believes Bitcoin (BTC) could drop as low as $70,000 before rallying to new highs. The crypto trader sees this as a standard bull market correction.

Bitcoin is currently trading at $80,105.76, showing a 0.3% gain in the past hour. Over the past 24 hours, it has dropped 2.7%, and over the last week, it has declined 4.0%. The leading cryptocurrency remains 26.37% below its all-time high of $109,786.

On Monday, BTC fell briefly below the $77,000 level, signaling increasing bearish pressure.

What Is Next For Bitcoin Price After $75K Hold Fails?

According to a new blog post by Arthur Hayes, the former CEO of crypto derivatives exchange BitMEX, Bitcoin could still drop to $70,000.

This aligns with a 36% correction from Bitcoin’s all-time high of $109,786, which is typical for a bull market.

Historical Bitcoin cycles suggest that sharp pullbacks are followed by massive rallies.

Also Read: Exclusive: 'It's Not a Matter Of If, But When!' — Ben Armstrong Of 'Crypto Family' Reacts To Sam Bankman-Fried's Jail Conditions In U.S.

Plan is be fucking patient. $BTC likely bottoms around $70k. 36% correction from $110k ATH, v normal for a bull market. Then we need stonks, $SPX and $NDX to enter free fall. Then we need TradFi muppet to go under. THEN we get Fed, PBOC, ECB, and BOJ all easing to make...

Previously, Hayes warned of Bitcoin sliding to $75,000. The crypto trader noted that there was a large cluster of options contracts in the $70,000-$75,000 range. This could lead to increased volatility if BTC price enters this zone.

If Bitcoin fails to hold $78,000, then $75,000 will become a critical support level. A further breakdown could trigger liquidations and send BTC toward $70,000.

Market data shows that traders are entering substantial short positions, and futures volume is increasing. This signals a cautious and selective sentiment among derivatives traders.

Macroeconomic Factors Impacting Bitcoin

Hayes is also keeping an eye on macroeconomic risks. He noted that while U.S. stock indices like the S&P 500 (SPX) and Nasdaq 100 (NDX) are nearing record highs, Bitcoin’s decline indicates underlying liquidity issues.

If a major financial institution collapses, central banks—including the Federal Reserve (Fed), European Central Bank (ECB), People’s Bank of China (PBOC), and Bank of Japan (BOJ)—may quickly intervene with liquidity injections.

Once these central banks pivot towards easing their policies, BTC will stage a strong comeback. However, traders trying to “buy the dip” too soon may face extended consolidation before the next uptrend.

Trump’s Potential Impact on Bitcoin’s Future

In a recent blog post, Arthur Hayes, the former CEO of crypto exchange BitMEX, discussed the potential impact of Donald Trump’s policies on Bitcoin (BTC).

According to Hayes, the U.S. economy is currently being sustained by government spending. If Trump slashes expenditures and cuts federal jobs, it could precipitate a recession.

In response, the Federal Reserve might be forced to lower interest rates and reintroduce quantitative easing (QE), which would serve to weaken the U.S. dollar. This, in turn, could make Bitcoin a more appealing store of value.

If economic instability accelerates, Hayes projects BTC reaching $250,000 by year-end. In a prolonged monetary expansion scenario, he envisions Bitcoin hitting $1 million before the end of Trump’s presidency.