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BitMEX Co-Founder Predicts Bitcoin Correction Before New All-Time High

Coin WorldWednesday, Jan 29, 2025 10:07 am ET

1min read

BitMEX co-founder Arthur Hayes has shared his perspective on the Bitcoin (BTC) market, suggesting that a significant correction could be on the horizon before the cryptocurrency reaches a new all-time high later this year. In a recent blog post, Hayes outlined his view that the most likely scenario for Bitcoin is a drop of up to 32% from its current level, followed by a substantial rally.

Hayes believes that the current bull cycle is not yet over, but he sees a higher probability of Bitcoin declining to the $70,000 to $75,000 range before surging to $250,000 by the end of 2022. This prediction comes as a shift from his earlier bullish stance, which he attributes to bearish signals from the macroeconomic environment and the crypto industry.

Hayes points to several factors that have contributed to his change in sentiment, including subtle movements in central bank balance sheets, banking credit expansion, and the relationship between US 10-year treasury yields, stocks, and Bitcoin prices. He also notes the impact of the Official Trump (TRUMP) memecoin price action on his outlook.

The BitMEX co-founder also highlights the deceleration in money supply growth in the world's first, second, and fourth-largest economies as a reason for his revised sentiment. He argues that a pullback of this magnitude would be "ugly" due to the current high level of bullishness, but he believes that the slowdown in fiat currency creation in major economies is not being fully appreciated by the market.

At the time of writing, Bitcoin is trading at $102,555. Hayes' prediction suggests that investors should be prepared for potential volatility in the Bitcoin market in the coming months, as the cryptocurrency could experience a significant correction before ultimately reaching new highs.

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