Arthur Hayes, the founder of BitMEX, a well-known cryptocurrency exchange, believes that Bitcoin’s price could soon take a significant dive. He predicts a potential drop to between $70,000 and $75,000.
Trump’s Political Influence
Hayes ties this prediction to the political situation in the US, specifically President Trump’s ability to pass his budget. He suggests that if Trump fails to get his budget approved, which includes increased spending and raising the debt ceiling, it could trigger a Bitcoin sell-off. He sees this as a test of Trump’s influence within the Republican party.
Hedge Fund Actions
Hayes also points to the actions of hedge funds who invested in BlackRock’s Bitcoin ETF (IBIT). He believes that if Bitcoin’s price continues to fall, these funds might start selling their ETF holdings to capitalize on their profits. This, he argues, could further accelerate the price drop.
Current Market Conditions
At the time of writing, Bitcoin is trading around $84,498, down over 4% in the last 24 hours.
Disclaimer: This is not financial advice. Always do your own research before investing in cryptocurrencies.
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