Bitcoin Forecast: Hayes Predicts Dip Below $35,000

Jan. 24, 2024
Bitcoin Forecast: Hayes Predicts Dip Below $35,000

BitMEX co-founder Arthur Hayes recently predicted that Bitcoin prices would go under $35,000. The nearing quarterly refunding statement of the U.S. Treasury and a long-term target of up to $5,000 in Ethereum (ETH) and $200 in Solana (SOL) have combined for the shift in sentiment.

On January 22, the billionaire and co-founder of the crypto exchange expressed his pessimistic point concerning Bitcoin on Twitter. Furthermore, he had predicted that the price of Bitcoin would remain low till January 31, when the United States Treasury would show its quarterly refund. Suppose U.S. Treasury Secretary Janet Yellen now starts making any negative statements.

In that case, this may still push the price of Bitcoin lower, even though the world is waiting for a real turning point in momentum. The Treasury’s quarterly refunding statement provides information about the upcoming auctions of Treasury securities to fund government spending. It also outlines the coming quarter’s general borrowing and debt management policy. Investors keep an eye on them because of the broad implications.

From the transaction data, blockchain writer Colin Wu exposed that Hayes might have paid 5 BTC for the $35K put options. This enlightens on the potential decisions from the financial side within the cryptocurrency market. The information from the snapshot indicated that he prescribed 0.025 BTC for each share and 200 puts. He spent 5$ BTC on it, with a total cost of about $203K.

Bitcoin Drops Below $40,500 Amidst Liquidity Concerns

Following the U.S. Bitcoin ETF, Arthur Hayes said in an earlier post today that the SPX and BTC no longer rose on a note-to-note basis. As investors wait for key macro developments, he predicted liquidity issues would come to the markets.

According to Coinglass data, $140 million has been liquidated in the past 24 hours. Not long ago, over 63 thousand traders were liquidated. A day before this liquidation was one of over $40 million prompted by Hayes’ Twitter post.

Bitcoin’s price dropped further, reducing below the $40,500 limit. On a macro level, the Bitcoin selloff is taking place due to growing rates on U.S. 10-year treasury yields and strengthening U.S. dollars.

After a few days of consolidating, the Bitcoin price has suddenly dropped to the downside. The ongoing selling pressure has prompted the Bitcoin rate to plunge below $40,500. Thus, in general, a decline in the cryptocurrency market was observed. At the time of writing, bitcoin is trading at $40,631, down 2.31% in the last 24 hours.

Related Reading | Binance Lawsuit Faces Hurdle as SEC Finds Favorable DC Judge

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.