The crypto market situation today appears to suggest that the enthusiasm around the Trump inauguration might already be settling down.
Popular crypto market analyst Arthur Hayes has shared his expectations for Bitcoin BTC $106 730 24h volatility: 1.6% Market cap: $2.12 T Vol. 24h: $23.49 B in the near future after BTC price slipped below the $100,000 mark amid a wider market downturn.
Bitcoin, Altcoins Fall Ahead of FOMC Meeting
While Bitcoin may have suffered around 6% decline in its value, altcoins such as Ethereum ETH $2 611 24h volatility: 3.7% Market cap: $315.23 B Vol. 24h: $18.11 B , Solana SOL $155.8 24h volatility: 6.2% Market cap: $82.22 B Vol. 24h: $5.18 B , XRP XRP $2.26 24h volatility: 4.5% Market cap: $132.92 B Vol. 24h: $2.08 B , Dogecoin DOGE $0.18 24h volatility: 1.3% Market cap: $26.44 B Vol. 24h: $951.04 M , and Cardano ADA $0.64 24h volatility: 2.8% Market cap: $23.27 B Vol. 24h: $459.10 M , and many more have experienced even bigger value drops. That is, with many of them seeing varying degrees of correction of between 8 to 13%.
The market situation today appears to suggest that the enthusiasm around the Trump inauguration might already be settling down. Besides, there is also some serious level of caution in the market as participants wait keenly on the interest rate decision that is set to be announced at the FOMC meeting by the US Federal Reserve this week.
Arthur Hayes Expects More BTC Price Correction
According to the former BitMEX CEO Hayes, BTC would likely first crash to $70,000 before it resumes any sustainable gains. In a recent X post, he paints this as a “mini financial crisis” that will not last so long. Hayes then added that as soon as the Fed gets back to printing money, BTC’s bull run to $250,000, a target well achievable by 2025, would resume.
Hayes’ views, meanwhile, appear to resonate with that of numerous other analysts. That is because, in the long-term, many of their predictions all point to a bull run for BTC.
For instance, CryptoQuant CEO Ki Young Ju insists that the Bitcoin bull run is still very much in progress. He wrote partly:
“We’re in the late stage of the Bitcoin bull market, but I believe there’s still room for growth. I’d say we’re in the early distribution phase, as new retail investors are entering.”
As of this publication, Bitcoin price was seen down 5.7% in 24 hours, and trading at $99,090.
Normally, BTC was supposed to defend the $101,000 support to prevent any further corrections. However, the current price of Bitcoin, which is significantly lower, and the apprehension about the upcoming FOMC meeting may have given more life to Hayes’ prediction.
Either way, Bitcoin would have to break past the resistance level of $106,000 to get back on track and start reaching new highs.
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