Bitcoin to See $75K Before Soaring to $250K, Predicts Arthur Hayes

In recent trading, Bitcoin experienced a notable drop of nearly 6% over the past 24 hours, briefly falling below $98,000. This downturn came despite a significant announcement on Friday from former President Donald Trump regarding the establishment of a crypto policy group aimed at shaping the United States' cryptocurrency landscape within six months.

Market experts warn of potential further declines. Arthur Hayes, co-founder of BitMEX, anticipates a challenging period for Bitcoin. He foresees a correction to between $70,000 and $75,000, suggesting a "mini financial crisis" could be on the horizon. Despite this short-term forecast, Hayes remains optimistic about Bitcoin's long-term potential.

He envisions a surge to $250,000 by year-end, propelled by renewed monetary stimulus. Hayes commented, “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 recent drop in Bitcoin's value has been linked to a broader market sell-off spurred by the rise of DeepSeek, a China-based artificial intelligence app.

This app has impressed markets by competing effectively with OpenAI’s models while requiring fewer resources. Such developments have sparked concern among investors, triggering a "risk-off" approach. Bitcoin, often correlated with US growth stocks, has benefited from the AI surge since 2022 but now faces challenges due to potential market shifts caused by innovations like DeepSeek.