Bitcoin Expected to Bottom at $70,000 Amid Market Correction

Arthur Hayes predicts Bitcoin's (BTC) price may bottom around $70,000, a 36% decline from its recent all-time high of $108,786. He notes that such corrections are typical in bull markets.

Bitcoin Price Action

Yesterday, BTC reached a four-month low of $76,606 amid market declines linked to recession fears.
The S&P 500 has dropped nearly 8% in the past month.
Polymarket assigns a 39% probability of a US recession in 2025, up from 23% earlier this year.

Hayes advises investors to remain patient. He believes BTC will likely complete its correction at $70,000, contingent on a significant drop in traditional financial markets and failures of major institutions, prompting central banks to engage in quantitative easing (QE).

Once QE is initiated, it presents an optimal buying opportunity. Traders should consider accumulating BTC, while risk-averse investors may wait for clearer signals before investing.

Historical trends show that QE has positively impacted BTC's price, with previous QE periods resulting in substantial gains.

Indicators of Trend Reversal

BTC’s Relative Strength Index (RSI) is at its lowest since August 2024, indicating a potential recovery.
The US dollar index (DXY) saw one of its largest weekly declines since 2013, raising optimism for BTC and other risk assets.

Currently, BTC is trading at $80,008, reflecting a 0.1% increase over the last 24 hours.