BitMEX Co-Founder Arthur Hayes Predicts Bitcoin Will Reach $250,000 by the End of the Year

Hayes suggests that the current downturn in the crypto market is a temporary setback, part of a natural cycle.

Arthur Hayes, the co-founder of BitMEX, sees a significant upside potential in Bitcoin (CRYPTO: BTC), with price predictions of $250,000 by year-end.

What Happened: In a recent interview, Hayes viewed the current downturn in the crypto market as a temporary setback in a natural cycle.

He suggests that the market is undergoing a correction following Bitcoin's rally from $20,000 to $110,000, leading to the de-trough of FTX and Trump coin.

"This thing is a short-term pain. We're clearing out the deadwood. We had a great run from $20,000 to $110,000 on Bitcoin, essentially FTX low until TRUMP coin, and now we got a 30% correction. It's pretty normal for a bull market," he explained.

"I think we're going to clear out all that deadwood, and I still believe that we could be $250,000 Bitcoin by the end of the year."

Highlighting the typical nature of such corrections in bull markets to eliminate weak elements, Hayes maintains optimism despite the 30% correction.

"From Bitcoin's perspective, and overall market capitalization of crypto, I think we're going to be much higher by the end of the year than we are today."

Pointing to another catalyst for Bitcoin's growth, Hayes highlighted the role of increased monetary supply.

He anticipates that governments will continue to print money to address economic challenges, which will, in turn, drive up the value of digital assets.

“We know the response. When there's financial distress, they always print money.”

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Why It Matters: The prediction by Hayes aligns with other optimistic forecasts in the crypto space. Recently, Tim Draper, a venture capitalist known for his accurate Bitcoin predictions, maintained his view that Bitcoin would reach $250,000 by the end of 2025.

Draper has a history of making bold calls, having previously predicted in 2014 that Bitcoin would hit $10,000 within three years, a prediction he later achieved.

Additionally, Tom Lee of Fundstrat has also pointed to Bitcoin's halving cycles and potential government adoption as factors that could propel Bitcoin past $250,000. Lee highlights the recent halving event as a key driver, noting that Bitcoin has already demonstrated significant growth, with its market capitalization nearly doubling in 2024.

Despite the current market correction, Hayes remains confident, urging investors to be patient.

In a recent post, he suggested that Bitcoin could find support around $70,000, a typical retracement level during bull markets. Hayes also anticipates a major stock market crash and the failure of a key financial institution before central banks intervene with liquidity measures.

Price Action: Bitcoin was trading at $84,462, up 3.2% in the past 24 hours, according to Benzinga Pro data.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Wikimedia Commons