- Arthur Hayes predicts Bitcoin could bottom at $70K, marking a 36% correction from its peak.
- He warns that stock market crashes and central bank interventions may influence BTC’s rebound.
- OI in Bitcoin options suggests high volatility if prices fall into the $70K – $75K range.
Bitcoin’s recent decline has sparked concerns among investors. The cryptocurrency fell below $77,000, marking its lowest level since November 10. The drop comes amid a broader market sell-off, with stocks also tumbling. Arthur Hayes, co-founder of BitMEX, has advised traders to remain patient. He believes Bitcoin will bottom out at $70,000 before rebounding.
Hayes shared his views on X, outlining his expectations for Bitcoin’s price movement. He noted that a 36% correction from its peak of $110,000 is normal in a bull market. He also suggested that a full recovery will require more market turbulence. Stocks need to decline further, and a major financial institution must collapse. He believes central banks will step in to stabilize the situation.
Hayes said traders should wait for this intervention before making significant moves. He advised risk-averse investors to hold off until central banks ease monetary policies. He warned that trying to time the exact bottom could lead to unnecessary losses. His message to traders was clear: patience is key.
Bitcoin dropped below $77,000 reaching $76,822 before it regained its position around $80,000. This marks a 30% reduction compared to its previous peak of $110,000. Market experts link the current market decline to ongoing economic inconsistency. The U.S. Federal Reserve’s upcoming decisions on monetary policy could play a key role in Bitcoin’s future movements.
Hayes also pointed out the differences between Bitcoin and traditional financial assets, with Bitcoin trading 24/7, while stock markets operate on fixed schedules. He highlighted that governments do not bail out Bitcoin holders, unlike traditional financial institutions. Furthermore, he also believes the stock market will receive a bailout, but it remains uncertain whether investors will benefit.
Some analysts have noted similarities to Hayes’ previous warnings. Last month, he predicted Bitcoin could fall to $75,000. Many investors dismissed the idea at the time. However, Bitcoin’s recent price action has made his prediction look accurate.
Related: Strategy Faces $3B Loss on $40B Bitcoin Holdings: Report
Options data suggests that the $70,000 to $75,000 range could be crucial. According to Deribit, there is $696 million in open interest at $70,000. Another $659 million is positioned at $75,000, and $680 million at $80,000. Hayes warned that if Bitcoin enters this range, it could trigger significant volatility.
The Fear & Greed Index has dropped to 24, indicating extreme fear. Market watchers are also monitoring upcoming inflation reports. These could influence the Federal Reserve’s monetary policy and impact Bitcoin’s price further.
