Arthur Hayes foresees a possible Bitcoin price correction to $70,000-$75,000, driven by political factors.
By Anisha Pandey
Edited by Julia Sakovich
Updated
2 mins read
Arthur Hayes, co-founder and former CEO of BitMEX, believes Bitcoin BTC $84 148 24h volatility: 2.2% Market cap: $1.67 T Vol. 24h: $24.97 B could retest levels between $70,000 and $75,000 in the coming months. In a blog post “The Genie” published on February 6, Hayes pointed out that the global realization of America’s largely unchanged political landscape, even after Donald Trump’s election, might trigger a price correction to the levels seen in Q4 2024.
Notably, in October, BTC was trading between $60,000 and $72,000. Soon after, early in November, Trump won the election, building anticipation around a Bitcoin strategic reserve. This optimism sent the cryptocurrency straight above the $100,000 psychological mark in just 40 days.
Despite Bitcoin’s current price trading around $98,700, Hayes’ bearish outlook has raised eyebrows, particularly as the market remains within a period of consolidation.
Despite reaching two peaks near $108,000 in recent times, Bitcoin has been trading in a narrow 15% price band since mid-November, maintaining a value above $90,000. A recent Bitfinex report hints at a potential breakout for Bitcoin in either direction over the next few weeks.
However, not everyone agrees on a potential price breakout in the downward direction after Trump recently signed an executive order on digital assets. On February 5, renowned crypto analyst Thomas Fahrer noted that any confirmation of the US government purchasing Bitcoin could trigger an unprecedented price rally, resulting in a $50,000 price surge.
While some market participants anticipate a sharp bullish move, Hayes presents a more cautious stance. He suggested that the potential for a Bitcoin reserve in the US might initially send prices soaring but ultimately pose long-term risks.
Hayes warned that a strategic reserve would be driven more by political motivations than financial benefits. If Democrats regain control in the 2028 election, Hayes speculates they might sell off the Bitcoin holdings as a form of political retaliation against Trump supporters who backed crypto.
BitMEX co-founder explained that if Trump fails to deliver on promises to curb inflation, end conflicts, and stabilize food supplies by 2026, the Democrats might use these economic shortcomings to gain political momentum and punish crypto backers.
“There would be 1 million Bitcoin just sitting there, ready to be sold; it just takes a signature on a piece of paper,” Hayes wrote, noting the vulnerability of such a reserve. He described it as a potential “political weapon.”
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
