The Forecast for Bitcoin Price Correction
The founder and former CEO of the BitMEX cryptocurrency exchange, Arthur Hayes, has shared a bearish forecast for the price of Bitcoin (BTC). According to Hayes, Bitcoin is expected to experience a correction of 20% to 30% from its year-to-date gains by March 2024. He believes that if spot Bitcoin ETFs begin trading in the US, the loss in BTC price will be severe.
“Imagine if the anticipation of hundreds of billions of fiat flowing into these ETFs at a future date propels Bitcoin above $60,000 and close to its 2021 all-time high of $70,000. I could see a 30% to 40% correction due to a dollar liquidity rug pull.”
Arthur Hayes, BitMEX founder
Hayes has decided not to buy Bitcoin until after the March decision dates have passed. However, he plans to try and top-tick the market in late February and then buy a sizable put position.
The Current State of BTC
As of now, BTC is trading at $43,660, showing a slight recovery from its recent fall. Speculation about the launch of a Bitcoin ETF has influenced the coin’s performance. It has increased by 1% in the last 24 hours but remains below the key $45,000 level.
Possible Significant Correction in Bitcoin
This isn’t the first time that industry participants have discussed a potential significant correction in Bitcoin’s price. In December, QCP Capital analysts stated that BTC may drop to $36,000 after the approval of spot Bitcoin ETFs. They believe that in the initial weeks following the launch, these funds may not receive the expected influx of capital, resulting in a price correction for the original cryptocurrency.
Hot Take: A Cautionary Outlook for Bitcoin
Arthur Hayes, the founder of BitMEX, has shared a bearish forecast for the price of Bitcoin. He expects a significant correction of 20% to 30% from its year-to-date gains by March 2024 if spot Bitcoin ETFs start trading in the US. Hayes advises caution and plans to wait until after the March decision dates before buying Bitcoin. This forecast aligns with other analysts’ concerns about a potential price correction in Bitcoin, especially after the approval of spot Bitcoin ETFs. It remains to be seen how these factors will impact the future performance of the leading cryptocurrency.
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