Bitcoin Price Could Dip to $70,000 Before Rally: Arthur Hayes

Bitcoin price has been on a rollercoaster ride since the start of 2025. It left investors uncertain about the near-term outlook. After a stellar Q4 in 2024, expectations were high as the cryptocurrency space awaited the return of U.S. President Donald Trump, who many anticipated would be a proponent of the sector.

However, January 2025 has not lived up to those hopes, with Bitcoin’s price action remaining volatile. Amid this uncertainty, BitMEX founder Arthur Hayes has weighed in with a significantly bearish short-term outlook for Bitcoin, predicting a potential dip to $70,000.

Arthur Hayes’ Bearish Short-Term Outlook

Arthur Hayes, known in the crypto community for his bold BTC predictions, shared his bearish outlook via an X post on January 27, 2025.

Hayes expects Bitcoin to dip to the $70,000 to $75,000 range before any potential rally. He stated that his full analysis would be released the following day in a blog post.

His prediction has caught the attention of both supporters and critics, with some calling him out for his past inaccuracies. In contrast, others acknowledge his past successes, including his predictions of Bitcoin’s rise to all-time highs in March 2024 and its rebound in September 2024.

Despite the criticism, Hayes remains confident about Bitcoin’s long-term future, forecasting that a “mini financial crisis” would trigger a resumption of quantitative easing. That Hayes believes will send Bitcoin soaring to new highs of $250,000 by the end of 2025.

– Advertisement –

Hayes’ bearish prediction coincides with increasing concerns in the broader financial markets. U.S. tech stocks, particularly Nvidia and AMD, have shown significant losses, sparking fears of a market downturn.

Bitcoin has historically been correlated with equities, particularly tech stocks, which could amplify any downturn in the traditional markets. The emergence of DeepSeek, a Chinese large language model rivaling OpenAI’s ChatGPT, has further intensified worries about the valuation of U.S. tech stocks.

Bitcoin Price Analysis

Bitcoin’s price has dropped by 5.93% in the last 24 hours, now sitting at $98,863. This decline is largely attributed to long-term holder (LTH) liquidations and Bitcoin’s failure to close above the critical $105,000 resistance level. As a result, short-term bearish sentiment is growing.

Bitcoin slipped below the $100,000 support level. This shift indicated a weakening in its recent price strength, with $100,000 having been a crucial psychological and technical level.

The immediate support was at $95,000, which could either hold as a temporary floor or see a short-term consolidation. A drop below $95,000 could have intensified bearish pressure, leading to deeper losses in the short term.

A potential bearish double-top pattern was forming on Bitcoin’s daily chart, with the neckline at approximately $92,000. If this pattern had materialized, it could have signaled a prolonged period of range-bound trading.

The market conditions have improved, and Bitcoin has reclaimed $100,000 as support. So, the bearish outlook may be invalidated. So now, Bitcoin might aim for its all-time high (ATH) of $109,699, spark renewed investor confidence, and pave the way for another price rally.

The key to Bitcoin’s short-term trajectory lies in the outcome of the Federal Open Market Committee (FOMC) meeting on January 29, 2025. Any developments from this meeting could dramatically impact Bitcoin’s price action in the coming weeks.