Bitcoin's Volatility: Hayes Predicts Rally After Temporary Slump
1min read Bitcoin's recent volatility has sparked debate among investors and analysts, with some predicting a rebound while others remain cautious. Arthur Hayes, co-founder of 100x and BitMEX, has weighed in on the discussion, forecasting a Bitcoin rally despite short-term sell-offs.
Hayes believes that Bitcoin will temporarily slide to around $70,000 before embarking on a major rally. He attributes this potential decline to market volatility and macroeconomic factors, which could influence Bitcoin's trajectory. However, he remains optimistic about the cryptocurrency's long-term bullish trend.
Hayes' projection aligns with historical market trends, with liquidity being a crucial factor for the next significant price movement of Bitcoin. He expects the pullback into the $70,000-$80,000 range to be a natural correction during the current bull run. Although Bitcoin has already pulled back by 10% to $83,000, Hayes suggests that this high may not be the low, and another drop could present a tactical buying opportunity for those who prefer spot accumulation over leverage.
Market volatility remains a concern for Hayes, who warns that a steep fall in leading stock indexes such as the S&P 500 or Nasdaq 100 could trigger a more severe Bitcoin correction. If these indexes decrease by 20%-30%, Bitcoin could be pulled back further before resuming its upward trajectory. Hayes advises investors to be cautious and accumulate Bitcoin incrementally rather than leveraging up, reflecting the growing institutional buying of the spot market.
At the time of this report, Bitcoin was valued at $90,808, having risen by 8.60% over the last 24 hours, with a market cap of $1.8 trillion and a trading volume of $62.14 billion.
Despite his optimism about Bitcoin's long-term direction, Hayes expresses uncertainty about Donald Trump's planned Bitcoin reserve. He doubts that the administration would allocate significant federal funds to purchase Bitcoins, given other pressing financial needs.
Hayes predicts that Bitcoin will continue to climb higher, with a strategy of cautious accumulation guiding traders through market ups and downs. His analysis offers valuable insights for both retail and institutional investors as Bitcoin approaches major support and resistance levels.
