Following Monday’s price plummet, Arthur Hayes, a famous American entrepreneur and BitMEX co-founder, has predicted that bitcoin (BTC) will drop to around $70,000. Notably, he believes that after reaching this low, BTC will soar to a new all-time high of $250,000 before the end of the year.
Reversing the order of my tryptic essay series.
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. pic.twitter.com/wohvbKkXOf
— Arthur Hayes (@CryptoHayes) January 27, 2025
Following President Donald Trump’s inauguration, the crypto community eagerly expects a price jump. However, the market has witnessed a change in structure, recently dropping below the six-figure mark. As a result, the 24-hour Simple Moving Average of BTC long liquidations reached $2.9M, marking the third-largest within the past three months.
$70k Price Plummet
A few factors have contributed to the recent crypto market tumble. The most significant event was the Chinese launch of DeepSeek, a new artificial intelligence tool that competes with American OpenAI. The debut announcement triggered bearish sentiment on NVIDIA, as its futures dropped by 4%, dragging down the American financial market and extending to the crypto market.
The new business week will also be a “Central Bank week,” as it features a full calendar with much U.S. financial news to be released. The Federal Open Market Committee (FOMC) is expected to release its latest interest rate decision. The United States will also announce the fourth quarter real Gross Domestic Profit and Q4 2024/December core Potential Consumption Expenditure as a stable picture of price changes.
Price Recovery in Sight
Amid the sell-off, American crypto enthusiast and author Robert Kiyosaki hit the industry with a massive prediction of a historic stock market crash next month, boosting BTC adoption and thus resulting in a market rebound.
Moreover, Trump’s adoption of crypto in the U.S. keeps hopes alive. His promise to make America the world’s capital of crypto and his recent executive order in connection to crypto has boosted investor’s confidence in BTC and other cryptocurrencies.
Meanwhile, following the price crash on Monday, about 300,000 bullish traders lost over $800 million.
