Arthur Hayes Predicts Bitcoin Drop To $70K As Huge AI News Disrupts Crypto And Stocks

Arthur Hayes Predicts Bitcoin Drop To $70K As Huge AI News Disrupts Crypto And Stocks

Is the Crypto Bull Run Heading Toward a Bearish Phase?

Earlier this week, the crypto market experienced significant volatility, sparking concerns about whether we’re entering a bearish phase or if the bull run has come to an end. On Monday, January 27th, approximately $1 billion was liquidated from the crypto market in just 24 hours, with most of the liquidations involving long positions. The largest of these liquidations included $312 million in Bitcoin (BTC), $143 million in Ethereum (ETH), $50 million in Solana (SOL), and $42 million in XRP.

So, what caused the sudden crash in crypto prices? The trigger seems to be a sharp decline in the stock market after a Chinese AI startup launched a competitor to OpenAI’s ChatGPT, called "Deepseek." The new AI tool is reportedly 50 times more powerful, free to use, and cost far less to develop than ChatGPT. This move sparked fear that Chinese AI firms could soon outpace their U.S. counterparts. As a result, stocks in AI and tech sectors, including chipmakers, saw major declines, with NVIDIA’s stock falling over 16%—a loss of $450 billion in market value. The ripple effect led to worries that the U.S. tech industry could lose its dominance.

Former Bitmex CEO Arthur Hayes weighed in on the situation, predicting that Bitcoin could face a correction, potentially dropping to as low as $70,000 or $75,000. He also anticipates a mini financial crisis, followed by a new round of money printing that could eventually send Bitcoin soaring to $250,000 by the end of 2025. This scenario is one that crypto investors and traders should consider as they navigate the current market volatility.

Is the Crypto Bull Run Heading Toward a Bearish Phase?

Earlier this week, the crypto market experienced significant volatility, sparking concerns about whether we’re entering a bearish phase or if the bull run has come to an end. On Monday, January 27th, approximately $1 billion was liquidated from the crypto market in just 24 hours, with most of the liquidations involving long positions. The largest of these liquidations included $312 million in Bitcoin (BTC), $143 million in Ethereum (ETH), $50 million in Solana (SOL), and $42 million in XRP.

So, what caused the sudden crash in crypto prices? The trigger seems to be a sharp decline in the stock market after a Chinese AI startup launched a competitor to OpenAI’s ChatGPT, called "Deepseek." The new AI tool is reportedly 50 times more powerful, free to use, and cost far less to develop than ChatGPT. This move sparked fear that Chinese AI firms could soon outpace their U.S. counterparts. As a result, stocks in AI and tech sectors, including chipmakers, saw major declines, with NVIDIA’s stock falling over 16%—a loss of $450 billion in market value. The ripple effect led to worries that the U.S. tech industry could lose its dominance.

This massive sell-off wasn’t isolated to just traditional tech stocks—it impacted cryptocurrencies as well. Bitcoin and Ethereum, often seen as the leaders of the digital asset space, were caught up in the wave of negative sentiment, seeing substantial drops in price. Many investors are now questioning whether this is a temporary setback or the beginning of a larger correction in the crypto market.

Former Bitmex CEO Arthur Hayes weighed in on the situation, predicting that Bitcoin could face a correction, potentially dropping to as low as $70,000 or $75,000. He also anticipates a mini financial crisis, followed by a new round of money printing that could eventually send Bitcoin soaring to $250,000 by the end of 2025. This scenario is one that crypto investors and traders should consider as they navigate the current market volatility.

Hayes' comments reflect a growing uncertainty among investors, as the global economic outlook remains unpredictable. While the potential for significant gains in the future is still on the table, there are risks involved in the short-term. As the market reacts to the latest developments, many traders are considering hedging their positions or diversifying into other assets to protect against further downturns.

What’s more, the behavior of the market is raising important questions about the role of regulation and government policies in shaping the future of cryptocurrencies. Could the recent stock market crash signal tighter regulations ahead? How will the crypto sector respond to global economic shifts?

This scenario is a reminder that crypto markets can be highly volatile, with sudden changes that can catch even experienced investors off guard. As the market stabilizes, staying informed and prepared for sudden movements will be key for anyone involved in crypto trading.

Do you agree with Hayes’ prediction? Will Bitcoin drop to the levels he forecasts, or is this just a short-term correction? Drop your thoughts in the comments below.