Bitcoin is facing a turbulent future, with Arthur Hayes, the co-founder of BitMEX, predicting a “violent” crash that could send its value plummeting to $75,000. In a recent post, Hayes warned of a steep decline in Bitcoin’s price, which has already dropped over 5 percent in the past 24 hours, dipping below $79,000, Coin Telegraph reported.
Hayes’ forecast stems from a confluence of factors, including market sentiment and the growing influence of options contracts, DL News reported. He noted that Bitcoin’s price could spiral further down if it fails to hold key support levels. “If we get into that range, it will be violent,” he said, referring to the $70,000 to $75,000 price zone.
The recent downturn in Bitcoin’s price can be traced back to several macroeconomic factors, including President Donald Trump’s handling of trade policies and the crypto market’s underwhelming response to his crypto summit.
According to analysts, as inflation concerns mount and the market reacts to the ongoing tariff wars, investors are turning to traditional safe havens like gold. “It’s no longer playing its role as a store of value,” said Zach Burks, CEO of NFT marketplace Mintology, told Forbes. “Many investors are pulling out of Bitcoin, viewing it as a risky asset class for the first time since Trump took the White House.”
Some remain optimistic about Bitcoin’s long-term potential. Hayes himself has previously predicted that Bitcoin could soar to $250,000 later this year as the dollar’s value weakens, Bloomberg reported.
As Bitcoin’s volatility continues to rock the markets, all eyes are on the upcoming inflation reports, which could heavily influence the Federal Reserve’s stance and, in turn, Bitcoin’s next move. For now, Hayes’ warning serves as a sobering reminder that the crypto market is far from predictable, and Bitcoin’s future remains uncertain.