The price of the leading cryptocurrency is likely to plummet to $70,000, according to former BitMEX CEO Arthur Hayes.
He stated that a “36% correction from the peak of $110,000 is standard for a bull market.”
Hayes noted that further growth in Bitcoin is possible only if the global market situation worsens. This could be expected if major stock indices like the S&P 500 and NASDAQ fall, and certain financial companies in the traditional sector face a crisis.
According to the expert, central banks’ actions will be the main factor determining the development of a new market cycle. The Federal Reserve, ECB, People’s Bank of China, and Bank of Japan may ease monetary policy to “make their countries great again.”
Hayes recommended waiting for this moment to enter the market. For those not ready for high volatility, he advises buying Bitcoin only after central banks begin to stimulate the economy. According to the former BitMEX CEO, this will help avoid emotional difficulties due to possible prolonged sideways movements or temporary losses.
The expert stated that Bitcoin has fundamental differences from the stock market, which become particularly clear during crises.
Hayes pointed out that stocks trade five days a week, are available only to a limited circle, and depend on government policy. This market is influenced by government support programs, and in case of failures, companies can rely on “bailout packages.” Additional U.S. tax revenues directly depend on the state of the stock market, making it policy-dependent.
Bitcoin, as the analyst noted, trades around the clock, is accessible to anyone with an internet connection, and its issuance is strictly limited. In unsuccessful operations, users bear the risks of bankruptcy or liquidation. The value of the leading cryptocurrency is not linked to the financial well-being of individual countries, Hayes emphasized.
As a result of these differences, Bitcoin in a liquidity crisis is the first to react to both market declines and growth, the expert concluded.
Back in February 25, Hayes also suggested that the price of digital gold would fall to $70,000. According to him, this would occur if hedge funds liquidate positions in spot ETFs.