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Why Arthur Hayes Predicts BTC Could Drop To $70K Soon?


Bitcoin worth recorded a drop of practically 4% slipping underneath $101,000 degree because the broader crypto market confronted robust promoting strain forward of the FOMC assembly. As BTC struggles to interrupt previous the $106K resistance, former BitMEX CEO Arthur Hayes expects it to first crash to $70,000 earlier than resuming the upward development.

Today’s crypto market selloff has pushed the altcoins even decrease as Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and so forth. have corrected between 5-10%. With the euphoria across the Trump inauguration waning, all eyes will likely be on the FOMC assembly forward this week whereby the US Federal Reserve will announce its rate of interest resolution.

Will Bitcoin Price Crash to $70,000 As Arthur Hayes Believes?

Arthur Hayes predicts a “mini financial crisis” the place he expects the Bitcoin worth to crash to $70,000 earlier than resuming a mega bull run to $250,000 as soon as once more. He believes that simply as this occurs, the US Federal Reserve will change again to cash printing as soon as once more. In his current submit on X, Arthur Hayes wrote:

“I am calling for a $70k to $75k correction in $BTC, a mini financial crisis, and a resumption of money printing that will send us to $250k by the end of the year”.

As of press time, the Bitcoin worth is buying and selling 3.8% down testing its essential assist of $101,000, which it must defend to stop any additional correction forward. Furthermore, the on-chain knowledge exhibits that long-term holders have been promoting their BTC holdings over the previous week.

Popular crypto analyst Ali Martinez famous that the overall Bitcoin provide held by long-term holders has decreased by over 75,000 BTC over the previous week. This exhibits robust profit-taking by long-term traders because the Bitcoin worth struggles to hit contemporary highs and break previous $106K resistance.

Source: Glassnode

However, CryptoQuant CEO Ki Young Ju believes that the Bitcoin bull run is just not over. He wrote:

“We’re in the late stage of the Bitcoin bull market, but I believe there’s still room for growth. I’d say we’re in the early distribution phase, as new retail investors are entering. Trump’s global promotional impact could extend this bull run for another couple of quarters”.

Crypto Market Selloff Leads to $548 Million in Liquidations

In the early Asian market buying and selling hours on Monday, Bitcoin and altcoins confronted robust promoting strain triggering greater than $548 million in crypto market liquidations as per the Coinglass knowledge. Of these, the lengthy liquidations have surged to $503 million, the place BTC alone is contributing to $190 million.

Crypto Market Prepares for First FOMC Meeting After Donald Trump Took Charge

The broader cryptocurrency market is bracing for the primary FOMC assembly ever since Donald Trump took cost on the White House final week. While the Trump inauguration and crypto executive orders brought about main euphoria, the macro indicators will probably resolve the following leg of the market journey from right here.

Notably, Trump has mentioned that he can be asking the US Fed to lower the interest rate to be able to drive financial exercise additional. This week marks a vital interval for world markets, with a number of main central banks set to make vital bulletins:

  • Federal Reserve (FOMC): The Federal Reserve will launch its rate of interest resolution, with expectations pointing towards no adjustments to the present charge.
  • European Central Bank (ECB): The ECB can also be set to announce its rate of interest resolution, drawing vital consideration from the markets.
  • U.S. Economic Data: Key stories, together with the fourth-quarter actual GDP figures and the December core PCE, will present essential insights into the state of the U.S. financial system.

China’s DeepSeek AI Storms Market

The rising reputation of China’s DeepSeek AI platform has generated a significant storm in Silicon Valley, because the Nasdaq futures collapsed greater than 3% in a single day on Sunday. Several AI chip manufacturing firms Arm (ARM), Nvidia (NDA), Broadcom (AVGO), and Qualcomm (QCOM) are down 2-6%. This is one other main purpose behind at present’s Bitcoin worth correction, in addition to the broader crypto market selloff.

Altcoins Market Correction Turns Severe

The top altcoins are additionally going through deeper correction with Ethereum worth down 5.72% as of press time, slipping to $3,166, and wiping off all of the weekly positive factors. On the opposite hand, the XRP worth has additionally misplaced its essential assist of $3 at present and a each day closing underneath this degree will open the gates for additional correction forward.

Meanwhile, Solana worth is down by a large 10.27%, whereas Dogecoin (DOGE) has crashed by 8.25%. This leaves traders confused as as to whether or not the altseason will start in Q1 2025.

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Bhushan Akolkar

Bhushan is a FinTech fanatic with a eager understanding of monetary markets. His curiosity in economics and finance has led him to concentrate on rising Blockchain know-how and cryptocurrency markets. He is dedicated to steady studying and stays motivated by sharing the data he acquires. In his free time, Bhushan enjoys studying thriller fiction novels and sometimes explores his culinary expertise.

Disclaimer: The introduced content material could embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability in your private monetary loss.





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