Bitcoin price recorded a drop of nearly 4% slipping under $101,000 level as the broader crypto market faced strong selling pressure ahead of the FOMC meeting. As BTC struggles to break past the $106K resistance, former BitMEX CEO Arthur Hayes expects it to first crash to $70,000 before resuming the upward trend.
Today’s crypto market selloff has pushed the altcoins even lower as Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Dogecoin (DOGE), etc. have corrected between 5-10%. With the euphoria around the Trump inauguration waning, all eyes will be on the FOMC meeting ahead this week wherein the US Federal Reserve will announce its interest rate decision.
Will Bitcoin Price Crash to $70,000 As Arthur Hayes Believes?
Arthur Hayes predicts a “mini financial crisis” where he expects the Bitcoin price to crash to $70,000 before resuming a mega bull run to $250,000 once again. He believes that just as this happens, the US Federal Reserve will switch back to money printing once again. In his recent post on X, Arthur Hayes wrote:
“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”.
As of press time, the Bitcoin price is trading 3.8% down testing its crucial support of $101,000, which it needs to defend to prevent any further correction ahead. Furthermore, the on-chain data shows that long-term holders have been selling their BTC holdings over the past week.
Popular crypto analyst Ali Martinez noted that the total Bitcoin supply held by long-term holders has decreased by over 75,000 BTC over the past week. This shows strong profit-taking by long-term investors as the Bitcoin price struggles to hit fresh highs and break past $106K resistance.
However, CryptoQuant CEO Ki Young Ju believes that the Bitcoin bull run is not over. He wrote:
“We’re in the late stage of the Bitcoin bull market, but I believe there’s still room for growth. I’d say we’re in the early distribution phase, as new retail investors are entering. Trump’s global promotional impact could extend this bull run for another couple of quarters”.
Crypto Market Selloff Leads to $548 Million in Liquidations
In the early Asian market trading hours on Monday, Bitcoin and altcoins faced strong selling pressure triggering more than $548 million in crypto market liquidations as per the Coinglass data. Of these, the long liquidations have surged to $503 million, where BTC alone is contributing to $190 million.
Crypto Market Prepares for First FOMC Meeting After Donald Trump Took Charge
The broader cryptocurrency market is bracing for the first FOMC meeting ever since Donald Trump took charge at the White House last week. While the Trump inauguration and crypto executive orders caused major euphoria, the macro indicators will likely decide the next leg of the market journey from here.
Notably, Trump has said that he would be asking the US Fed to lower the interest rate in order to drive economic activity further. This week marks a critical period for global markets, with several major central banks set to make significant announcements:
- Federal Reserve (FOMC): The Federal Reserve will release its interest rate decision, with expectations pointing toward no changes to the current rate.
- European Central Bank (ECB): The ECB is also set to announce its interest rate decision, drawing significant attention from the markets.
- U.S. Economic Data: Key reports, including the fourth-quarter real GDP figures and the December core PCE, will provide crucial insights into the state of the U.S. economy.
China’s DeepSeek AI Storms Market
The growing popularity of China’s DeepSeek AI platform has generated a major storm in Silicon Valley, as the Nasdaq futures collapsed more than 3% overnight on Sunday. Several AI chip manufacturing companies Arm (ARM), Nvidia (NDA), Broadcom (AVGO), and Qualcomm (QCOM) are down 2-6%. This is another major reason behind today’s Bitcoin price correction, as well as the broader crypto market selloff.
Altcoins Market Correction Turns Severe
The top altcoins are also facing deeper correction with Ethereum price down 5.72% as of press time, slipping to $3,166, and wiping off all the weekly gains. On the other hand, the XRP price has also lost its crucial support of $3 today and a daily closing under this level will open the gates for further correction ahead.
Meanwhile, Solana price is down by a massive 10.27%, while Dogecoin (DOGE) has crashed by 8.25%. This leaves investors confused as to whether or not the altseason will begin in Q1 2025.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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