Arthur Hayes predicts Bitcoin to drop $70K before reaching $250K

Arthur Hayes, the former CEO of BitMEX, has made a bold prediction regarding Bitcoin's (CRYPTO:BTC) price trajectory for 2025.

He forecasts that Bitcoin will experience a significant decline, potentially falling to between $70,000 and $75,000 before rebounding to an impressive $250,000 by year-end.

Hayes attributes this anticipated downturn to macroeconomic factors rather than the recent market turmoil associated with the AI startup DeepSeek.

“I am calling for a $70,000 to $75,000 correction in BTC, a mini financial crisis, and a resumption of money printing that will send us to $250,000 by the end of the year,” he stated.

His analysis points to deteriorating global fiat liquidity as a critical driver for this correction.

Rising US Treasury yields and a tightening Federal Reserve are contributing to increased financial stress, creating an unfavorable environment for Bitcoin and other fiat-priced assets.

Hayes emphasised that such pullbacks are common in Bitcoin's volatile market behavior and noted that the cryptocurrency often reacts strongly to shifts in global liquidity conditions.

He also mentioned that while his initial predictions did not account for DeepSeek's impact on the market, the events surrounding it have reinforced his bearish outlook.

Despite this short-term pessimism, Hayes remains optimistic about Bitcoin's long-term prospects.

He believes that once the market stabilises after this correction, renewed money printing will drive Bitcoin prices to new heights.

The current fluctuations in Bitcoin's value have prompted mixed reactions within the crypto community.

While some analysts express scepticism about Hayes' predictions due to past inaccuracies, others recognise his successful forecasts over the last year.

At the time of reporting, the Bitcoin (BTC) price was $103,317.