Bitcoin Bear Market: Hayes Predicts $70K Crash Amid Trump's Fiscal Uncertainty

The Bitcoin price has been experiencing significant downward pressure and volatility, leading some analysts to believe that a bear market may have begun. While some hope for a price reversal to the upside, others predict a further crash to $70,000, which would erase almost all gains achieved after the US election rally.

Popular crypto analyst and Co-founder of BitMEX Arthur Hayes has shared a bearish prediction for the Bitcoin price. He projects a further breakdown in Bitcoin’s value, suggesting an imminent drop between $70,000 and $75,000. Hayes shared a 2-hour Bitcoin price chart from BitMEX, explaining how the pioneer cryptocurrency could experience this decline and citing macroeconomic factors tied to United States (US) President Donald Trump as a trigger for this price drawdown.

Hayes suggests that the market is entering a cooling phase, characterized by a potential retracement to pre-election liquidity levels. A cooling phase is a period during which the price of a cryptocurrency declines and consolidates as the market attempts to stabilize. It typically comes after a cryptocurrency experiences an explosive price increase.

Looking at his price chart, the BitMEX Co-founder pinpointed a demand zone around the blue-shaded area between $76,000 and $65,000. This price range serves as a critical support area, where traders expect significant buying interest, enough to prevent further price declines.

Hayes believes that the Bitcoin price’s possible decline to $70,000 hinges on Trump’s budget and debt ceiling decision. He suggests that if Trump fails to pass a budget that increases spending and raises the debt ceiling, then further market capitulation could occur. This means that the market may undergo a rapid sell-off by a large number of investors, triggering a panic that could lead to further declines in the Bitcoin price.

Additionally, if Trump’s influence over the Republican Party weakens, Hayes indicates that market uncertainty could grow, potentially triggering a continuation of the current Bitcoin downturn. Moreover, a debt ceiling reduction could negatively impact the market’s liquidation and fuel more price fluctuations.

Overall, Haye’s bearish outlook for Bitcoin is tied to Trump’s fiscal influence. The BitMEX Co-founder suggests that, for now, the market can only “chill out, retrace, and wait.”