Arthur Hayes predicts key support level for Bitcoin, says it must hold this number to avoid the 'tax storm'
Riding the Bitcoin roller coaster is really thrilling! After a sharp drop on Wednesday, it has now slightly rebounded, but former BitMEX CEO Arthur Hayes has issued a warning that the real test is yet to come! He even posted on X, stating that Bitcoin must hold $765,000 until the U.S. 'Tax Day' on April 15, and warned investors not to get trapped in this round of volatility!
Hayes' warning coincides with Trump announcing new 'reciprocal tariffs', causing global markets to fall into chaos. The reason is that Trump announced yesterday a 10% base tariff on all countries, with differential rates of 34%, 20%, and 24% imposed on China, the EU, and Japan, respectively.
This policy directly led to Bitcoin's price dropping from a high of $88,500 to $82,200. The situation for Ethereum is even more severe, with its price plummeting from $1,950 to $1,780, shrinking the entire cryptocurrency market's market cap by 5%, now only at $2.7 trillion.
Glassnode's on-chain data confirms Hayes' concerns: although Bitcoin surged to $109,000 in January, it is now clearly lacking momentum. While it has temporarily stabilized in the $76,000-$80,000 range, this rebound is likely a 'dead cat bounce', and the real downtrend may just be beginning!
However, Hayes remains confident in the crypto market, even predicting that Bitcoin could soar to $250,000 by the end of the year! The reason is that global central banks will definitely engage in aggressive monetary easing. Especially if the Fed starts quantitative easing (QE), 2025 will definitely usher in a super bull market!
Do you agree with Hayes' view? Do you think the market will see a turnaround after the U.S. 'Liberation Day' (April 15)?
