BitMEX founder Arthur Hayes is doubling down on his call that Bitcoin (BTC) and crypto will likely see lower prices before rallying to new all-time highs.
Late last month, Hayes predicted that BTC would drop to as low as $70,000 amid a slew of bearish macroeconomic and crypto signals before rallying to as high as $250,000.
“Subtle movements between central bank balance sheet levels, the rate of banking credit expansion, the relationship between the US 10-yr treasury/stocks/Bitcoin prices, and the insane Official Trump (TRUMP) memecoin price action produced a pit in my stomach. This is a similar feeling I got in late 2021, right before the bottom fell out of the crypto markets.”
Following the severe pullback witnessed over the weekend, Hayes says the correction in crypto will likely continue “until morale improves.”
According to the crypto veteran, the downside price action will only stop once the traditional financial (TradFi) industry is on the brink of collapse. At that point, Hayes believes that the Fed would ease monetary policy and give TradFi firms some relief.
“The pain stops when a TradFi outfit is on the verge of bankruptcy. Then the Fed reluctantly joins team Trump and prints that money. And then you better be ready to buy crypto like you have never bought before.”
Looking at Solana (SOL), Hayes says that the altcoin can drop to a level last seen in November of last year.
“And they said you would never be able to buy SOL < $200 ever again. Can we go to $150?”
At time of writing, SOL is worth $216.
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