Arthur Hayes Predicts Major Bitcoin Correction Followed by Rally

Arthur Hayes, the co-founder of BitMEX, has made a bold prediction about the future of Bitcoin (BTC) in light of increasing market volatility and signs of a potential "mini financial crisis." He forecasts that Bitcoin's price could drop significantly to between $70,000 and $75,000, before dramatically skyrocketing to $250,000 by the end of the year.

The forecast was shared by Hayes on social media on Monday, where he also announced that he would be releasing a series of essays titled "The Good, The Bad, The Ugly" to elaborate on his thoughts. Currently, Bitcoin is trading around $98,917, having seen a 3.76% decline over the last 24 hours, particularly after a peak above $105,000.

The cryptocurrency market has been experiencing significant fluctuations, evidenced by approximately $400 million in liquidations over just four hours of trading on Sunday evening. Most of this figure—about $389 million—was attributable to long positions, indicating that many traders are starting to adopt a bearish outlook.

Hayes revealed his correction prediction as he prepares to publish the first part of his essay series. He expressed that starting with "The Ugly" is intentional and focuses on potential challenges within the market, including his expectation of a correction in BTC prices and a subsequent return to money printing that would push Bitcoin to much higher levels.

"The Ugly will be published tomorrow morning. 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," he stated on social media.

This forthcoming series of essays will be released over eight weeks, covering various topics such as the influence of political memes on the market and the risks facing U.S. cryptocurrency. According to Hayes, the essays will explore these dynamics and provide deeper analysis on market conditions.

Meanwhile, market analysts are divided on Bitcoin's future trajectory. Some analysts, like Ali Martinez, suggest that the recent downturn may have invalidated previous bearish patterns, proposing an upward target of $122,000. Others, such as chartist Rekt Capital, emphasize the importance of Bitcoin's recent weekly closes above significant resistance levels, which they argue are typically signaling a move towards new all-time highs.

Other major cryptocurrencies have also faced substantial losses recently. Ethereum (ETH) dropped by 5.60% and Dogecoin (DOGE) fell by 7.50% in the last 24 hours. This overall market volatility appears to be related to broader economic trends, including new tariffs announced by President Donald Trump and market anticipation surrounding the Federal Reserve's upcoming meetings. Current predictions suggest a high likelihood that interest rates will remain unchanged during these discussions.

As the cryptocurrency industry navigates these tumultuous waters, stakeholders will be closely monitoring Hayes' predictions and broader market developments to better understand the potential direction of prices.

Bitcoin, Price, Prediction