According to Odaily, BitMEX co-founder Arthur Hayes maintains that Bitcoin is still in a bullish cycle despite recent market downturns. While he acknowledges the potential for short-term corrections, he believes the worst-case scenario would see Bitcoin dropping to its previous cycle peak of $70,000.
Key Factors Influencing Bitcoin’s Price
U.S. Dollar Liquidity Boosting Markets
Hayes points to a decline in the U.S. Treasury's General Account, which injects liquidity into the financial system. Historically, increased liquidity has been bullish for Bitcoin, providing strong support at current levels.
Possible Pullback to $80,000 as a Buying Opportunity
If Bitcoin's recent price recovery is just a temporary rebound, Hayes suggests a pullback to $80,000 could provide another optimal buying opportunity for long-term investors.
Risk of a Broader Market Correction
Hayes warns that if the S&P 500 or Nasdaq 100 drop by 20 to 30 percent, triggering a financial crisis at a major institution, Bitcoin could face a synchronized sell-off with other risk assets. In this case, Bitcoin could drop below $80,000 or even revisit $70,000.
Long-Term Outlook: Bitcoin Could Reach $1 Million
Despite short-term risks, Hayes remains highly bullish on Bitcoin’s long-term potential. He advises investors to buy dips cautiously without leveraging positions, hold for the long run in anticipation of future disruptions in fiat markets, and prepare for a significant Bitcoin rally once the global economy stabilizes.
If his predictions hold true, Bitcoin could surpass $1 million in the coming years, driven by increasing fiat devaluation and institutional demand.
