Arthur Hayes, CIO of Maelstrom Fund, warned that increasing macroeconomic pressures could pull Bitcoin back to the $100,000 level - and he has sold cryptocurrencies in advance to hedge against risks.
The recent concerns over tariffs triggered by the poor non-farm payroll report are one of the reasons for the cryptocurrency pullback. The report showed that the U.S. added only 73,000 jobs in July, indicating a weakening economy.
Hayes pointed out that the slow credit growth in major economies has suppressed nominal GDP growth, which could lead Bitcoin (BTC) and Ethereum (ETH) to further decline, approaching the levels of $100,000 and $3,000.
Hayes sold over $13 million worth of ETH, ENA, and PEPE.
Hayes commented on Saturday in response to a post on the X platform from Lookonchain. Blockchain analysis data from the platform shows that Hayes recently sold $8.32 million worth of ETH, $4.62 million of Ethena (ENA), and $414,700 of Pepe Meme cryptocurrency (PEPE).
According to Arkham Intelligence, the crypto wallet used by Hayes to sell currently holds tokens worth $28.3 million, of which $22.95 million is in USDC stablecoins (USDC).
Bitcoin faces a potential double-digit correction
Hayes' comments reflect the general concern that macroeconomic headwinds may suppress the cryptocurrency market. Tightening credit, revived tariffs, and a weak job market could put pressure on risk assets, testing investor confidence and even leading to market corrections.
Bitcoin has fallen over 7.7% since hitting an all-time high of $123,000 on July 14, while Ethereum has dropped 12.5% since breaking $3,900 on July 28, according to CoinGecko data.
If the Bitcoin price falls to $100,000, it would mean an 18.7% correction.
Bitcoin supporters believe this time is different
However, many industry analysts believe Bitcoin has passed the stage of significant double-digit corrections.
This includes Bloomberg ETF analyst Eric Balchunas, who noted that since BlackRock filed for a spot Bitcoin ETF in June 2023, Bitcoin's volatility has significantly decreased without a major pullback.
Related: Ray Dalio sells his last Bridgewater stake after predicting a debt collapse
Mitchell Askew, chief analyst at Bitcoin mining company Blockware Solutions, added: 'The severe bull and bear markets of the past are over.'
Magazine: Crypto traders deceive themselves over price predictions: Peter Brandt
