In a recent analysis, BitMEX co-founder Arthur Hayes has raised concerns about the short-term future of Bitcoin, predicting a possible price pullback to $90,000. Hayes, a prominent figure in the cryptocurrency space, attributes this potential dip to macroeconomic factors and policy changes, particularly surrounding the impact of new legislative moves in the U.S.
Hayes specifically pointed to the passage of what he calls Trump's 'Big Beautiful Bill', a piece of legislation that could introduce significant volatility into financial markets. He suggests that while the bill may have long-term positive effects, its immediate impact could lead to a temporary decline in Bitcoin's price, creating a buying opportunity for savvy investors.
Despite this cautionary outlook, Hayes remains bullish on Bitcoin over the long term. He believes that after the anticipated correction, the cryptocurrency could resume its upward trajectory, potentially reaching new highs by the end of 2025 as monetary policies adapt and market confidence returns.
Hayes also advised investors to be wary of traditional financial instruments like government bonds, suggesting a shift towards Bitcoin and banking stocks as safer bets in the current economic climate. This advice comes amidst growing concerns over stablecoin liquidity and broader financial system stability.
Market watchers have noted a surge in Bitcoin and crypto mining stocks recently, driven by favorable economic signals. However, Hayes warns that this optimism might be short-lived if the predicted financial adjustments materialize, urging investors to stay vigilant.
This warning from Arthur Hayes adds to the ongoing discourse about Bitcoin's volatility and its role as both a speculative asset and a potential safe haven in turbulent times. As the crypto market continues to evolve, his insights serve as a critical reminder of the risks and opportunities that lie ahead.
Alfred Lee
