[NEWS] Hayes predicts Bitcoin will fall to the $70,000 range, and could hit $250,000 by the end of the year

Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, predicted on the 27th that Bitcoin (BTC) would "drop from $70,000 (approximately ¥10.9 million) to $75,000 (approximately ¥11.7 million) and then be adjusted."

Reversing the order of my tryptic essay series.

The Ugly will be published tomorrow morning. 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. pic.twitter.com/wohvbKkXOf

— Arthur Hayes (@CryptoHayes) January 27, 2025

The rise of Chinese AI company DeepSeek has become more prominent, and the risk-off trend has intensified due to the possibility that it could bring about changes in the Western-led AI development race, causing Bitcoin to fall sharply. At the same time, altcoins have also fallen significantly in price. At the time of writing, prices are gradually recovering.

Hayes posted his Bitcoin price predictions on X in response to the series of sharp declines. He also pointed out that there is a possibility that a small financial crisis could occur as U.S. Treasury yields rise in the future.

On the other hand, he also predicted that Bitcoin would reach $250,000 (approximately ¥38.9 million) by the end of the year, as the amount of currency issued will increase as part of monetary easing.

Hayes also mentioned the price of Bitcoin on the 7th of this month, saying that it may “peak temporarily in mid-March,” citing the Federal Reserve’s monetary policy and changes in the supply of dollars as the basis for his prediction.

DeepSeek's large-scale language model "DeepSeek-R1" is said to boast performance equal to or better than OpenAI's latest model "o1". The unrest has spread in the West, which has led the AI ​​field, and has also affected stock prices.

The impact on semiconductor giant NVIDIA was particularly large, with the company's stock price falling by about 17% in one day. Its market capitalization temporarily fell by about $600 billion (about 92 trillion yen). The Nasdaq, which is home to high-tech stocks, also fell 3% from the previous day.

Currently, cryptocurrencies such as Bitcoin tend to be influenced by trends in the United States, taking into account the inauguration of President Trump. In fact, Hayes also stated his opinion on the recent drop in cryptocurrency prices, saying, "In addition to investors avoiding risk, the drop in Nasdaq futures has also affected cryptocurrencies."

For the time being, attention is expected to be focused on the trends of DeepSeek, which can significantly reduce costs compared to AI developed in the West, and there is a possibility that the situation in which investors' expectations are easily reflected in the U.S. stock market will continue. At this point, it is entirely possible that the impact will extend to cryptocurrencies such as Bitcoin.

Reference: Hayes Blog
Image: Shutterstock

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