Arthur Hayes, a well-known figure in the cryptocurrency world and former CEO of BitMex, has issued a warning about a potential correction in the price of Bitcoin (BTC) to the $70k-75k level. This caution comes after Bitcoin experienced a significant drop below its key support level of $100k, triggering a massive liquidation in the crypto market.
Bitcoin’s price plummeted by nearly 5.5% in just one day, marking the first time it had fallen below the $100k mark since President Donald Trump’s inauguration on Jan. 20. This decline was part of a broader downturn in the crypto market, with major cryptocurrencies like Ethereum (ETH), XRP (XRP), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) also experiencing losses ranging from 9% to 17%.
Hayes took to Twitter on Jan. 27 to express his concerns, predicting a “mini financial crisis” that could lead to a correction in Bitcoin’s price. He stated, “I am calling for a $70k to $75k correction in $BTC, a mini financial crisis, and a resumption of money printing that will send us to $250k by the end of the year.”
The warning from Hayes came as Bitcoin’s price drop triggered an $854.39 million mass liquidation event, wiping out nearly $794.5 million in leveraged long positions within 24 hours, according to data from CoinGlass. The market also reacted to the debut of China’s AI app, DeepSeek, which has caused shockwaves in the tech and crypto space.
Market analyst Adam Kobeissi suggested that the launch of DeepSeek may have spooked traders, contributing to the recent crash. He stated, “Risk-off is the theme as DeepSeek scares investors.”
However, not everyone shares Hayes’ bearish outlook. Georgii Verbitskii, founder of TYMIO, believes that the recent sell-off is a natural cooling off after a bullish run in the crypto market that began after Trump’s presidential win. Verbitskii stated, “While some market players like Arthur Hayes are predicting a correction to $75k, I don’t share that expectation—Bitcoin’s fundamentals remain strong.”
Verbitskii suggested that if Bitcoin continues to trade below the $100k psychological resistance level in the coming week, a more modest correction to $87k could be on the horizon. He emphasized that as long as the underlying fundamentals of Bitcoin remain intact, the correction is likely just a part of the broader market cycle.
Overall, the cryptocurrency market remains volatile, with conflicting opinions on the future direction of Bitcoin’s price. Investors and traders will be closely monitoring the situation to see how events unfold in the coming days and weeks.