Arthur Hayes Predicts a Financial Crisis, Bitcoin Price Could Dip to $70k
Bitcoin (BTC) experienced a significant downturn on January 27th, 2025, falling nearly 4% and breaching the $101,000 support level.
Arthur Hayes, former CEO of BitMEX, anticipates a “mini financial crisis” leading to a Bitcoin price crash to $70,000. He posits that this downturn will precede a renewed bull run, potentially reaching $250,000, coinciding with a resumption of quantitative easing by the US Federal Reserve.
Bitcoin (BTC) experienced a significant downturn on January 27th, 2025, falling nearly 4% and breaching the $101,000 support level. This decline mirrored a broader crypto market selloff, characterized by strong selling pressure in anticipation of the upcoming Federal Open Market Committee (FOMC) meeting.
Altcoins suffered even more acutely, with Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) experiencing corrections ranging from 5% to 10%. This downturn follows the waning enthusiasm surrounding the recent inauguration of President Trump, shifting market focus to the impending FOMC decision on interest rates.
Diversified Bitcoin Experts Market Opinions
Adding weight to the ongoing bearish sentiment is on-chain data revealing significant profit-taking by long-term holders. Analyst Ali Martinez highlights a reduction of over 75,000 BTC held by long-term holders within the past week. This suggests a significant shift in investor sentiment, with long-term holders capitalizing on previous gains amidst the struggle to surpass the $106,000 resistance level.
Conversely, a more optimistic perspective emerges from Ki Young Ju, CEO of CryptoQuant. He believes the Bitcoin bull run is not yet concluded, suggesting the market is in an “early distribution phase” with new retail investors entering. He attributes the extended bull run, at least partially, to the global promotional impact of President Trump’s administration. This contrasting view highlights the inherent difficulties in accurately predicting the complex dynamics of the cryptocurrency market.
The sharp decline witnessed in early Asian market trading on January 27th, 2025, resulted in over $548 million in crypto market liquidations, according to Coinglass data. Long liquidations constituted a significant portion of this figure, reaching $503 million, with Bitcoin alone accounting for $190 million.
The upcoming FOMC meeting holds significant weight for the crypto market, marking the first such meeting since President Trump assumed office. While the initial euphoria surrounding his inauguration and associated executive orders has subsided, the FOMC’s decision on interest rates will likely be a crucial determinant in shaping the market’s next phase.
