Arthur Hayes, former CEO of BitMEX, predicted in a Jan. 27 blog post that Bitcoin (BTC) is likely to correct to the zone between $70,000 and $75,000 before reaching $250,000 by the end of 2025. 

Hayes argued that Bitcoin’s historical volatility makes a 30% correction plausible within this bull market.

A potential pullback to the $70,000 range would likely give back all gains spurred by recent market optimism, including the “Trump Trade” following President Donald Trump’s re-election in 2024.

According to Hayes:

“A pullback of this magnitude would be ugly. I think we are more likely to go down to $70,000 to $75,000 Bitcoin and then rise to $250k by the end of the year than to continue [grinding] higher with no material pullback.”

Hayes added that a steep correction in Bitcoin would likely trigger an even larger selloff in altcoins, creating lucrative opportunities for those positioned to capitalize. 

Consequently, a large liquidation of Bitcoin positions could signal when it’s time to find reasonable entry prices in other crypto.

History often rhymes

Hayes began the year optimistic but has since tempered his outlook. Drawing parallels to the market downturn of late 2021, he explained that subtle shifts in central bank balance sheets, credit expansion, and fiat liquidity conditions have left him uneasy. 

Although optimistic about continuing the bull cycle in 2025, Hayes sees a potential correction approaching. Much of his analysis focuses on the interplay between global monetary policy and financial markets. 

He highlighted concerns about the US Federal Reserve, which, according to Hayes, faces a delicate balancing act as it navigates rising 10-year Treasury yields and political pressures. The record pace of debt issuance and the reluctance of usual buyers — foreign governments and commercial banks — are creating a “powder keg” for the Trea

Go to Source to See Full Article
Author: Gino Matos