Bitcoin to Crash Before Fed-Driven Comeback, Says Arthur Hayes

Arthur Hayes, the co-founder of BitMEX, warns that Bitcoin and the broader crypto market could experience another downturn before making a run toward new all-time highs.

He previously suggested that Bitcoin might dip to around $70,000 due to worsening macroeconomic conditions and market-specific pressures. Despite the short-term turbulence, he believes the long-term trajectory remains bullish, with BTC potentially reaching $250,000 once conditions shift.

Hayes sees troubling signs across global financial markets. He notes that subtle changes in central bank policies, credit markets, and movements in U.S. Treasuries, equities, and even memecoins remind him of late 2021—right before a major crash.

After a sharp drop in crypto prices over the weekend, he expects further downside before sentiment recovers. In his view, the selling won’t stop until traditional financial institutions show signs of distress.

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At that point, he anticipates the Federal Reserve will be forced to step in with monetary stimulus, setting the stage for a crypto rebound.

When the Fed finally pivots, Hayes suggests it will create a prime opportunity to accumulate digital assets before the next explosive rally. He also expects Solana to revisit levels from late last year before it finds a bottom.

Alexander Stefanov