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According to crypto entrepreneur Arthur Hayes, Bitcoin (BTC) is likely to bottom around $70,000, marking a 36% correction from its latest all-time high (ATH) of $108,786. Hayes stated that such corrections are “very normal” in a bull market.
Bitcoin To Dip Further?
Yesterday, Bitcoin hit a four-month low of $76,606 as both the global cryptocurrency and stock markets tumbled amid rising fears of an economic recession. For context, the S&P 500 (SPX) has dropped nearly 8% over the past month.
Latest data from predictions market platform Polymarket assigns a 39% chance of a US recession in 2025. On February 28, the platform gave a 23% probability of a US recession this year.
Despite these economic concerns, Hayes advises crypto investors to remain patient. In an X post published yesterday, the former BitMEX CEO stated that BTC will likely find a bottom around $70,000, completing a routine 36% correction from its ATH in January.
Hayes further noted that once BTC hits $70,000, traditional financial markets – including the S&P 500 (SPX) and Nasdaq (NDX) – would need to experience a sharp decline, accompanied by failures in major financial institutions.
This, in turn, would prompt central banks like the US Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of Japan (BOJ) to initiate quantitative easing (QE), creating an optimal buying opportunity. He added:
Then you load up the truck. Traders will try to buy the dip, if you are more risk averse wait for the central banks to ease then deploy more capital. You might not catch the bottom but you also won’t have to mentally suffer through a long period of sideways and potential unrealised losses.
Historical data suggests that QE has been highly beneficial for BTC’s price. During the last QE period, from March 2020 to November 2021 – amid the COVID pandemic – BTC surged from $6,000 to as high as $69,000, marking an astonishing 1,050% gain.
Similarly, crypto analyst Michael van de Poppe shared the following chart, noting that BTC likely completed a double-bottom re-test and experienced a strong bounce after yesterday’s potential low. He further suggested that if BTC breaks past $83,500, it could see an even stronger move to the upside.
Data Points Toward BTC Trend Reversal
While Hayes predicts that BTC has yet to bottom, several indicators suggest the flagship cryptocurrency may soon witness a trend reversal. For instance, BTC’s Relative Strength Index (RSI) is currently at its lowest level since August 2024, signaling that a potential recovery may be imminent.
Additionally, the US dollar index (DXY) recently experienced one of its largest weekly declines since 2013, raising hopes for a rally in risk-on assets like Bitcoin. At press time, BTC is trading at $80,008, up 0.1% in the past 24 hours.
Featured image from Unsplash, charts from X and TradingView.com
Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.
Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.
In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.
A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.
When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.
Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.
Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.
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