BitMEX co-founder Arthur Hayes has predicted a potential significant correction for Bitcoin and Ethereum, driven by deteriorating macroeconomic conditions.
Hayes forecasts Bitcoin may decline to $100,000 (an 18.7% drop from current levels) and Ethereum could fall to $3,000. This cautious stance follows his recent sale of over $13 million worth of cryptocurrencies, including Ether (ETH), Ethena (ENA), and Pepe (PEPE), reflecting heightened market uncertainty.
The broader crypto market faces pressure from several economic headwinds. Weak U.S. job growth, with only 73,000 new jobs added in the most recent report, coupled with rising global tariff tensions and sluggish credit markets, contribute to the bearish outlook. Bitcoin has already retreated 7.7% from its all-time high of $123,000.
Countering the bearish sentiment, some analysts observe that Bitcoin’s volatility has decreased following the approval and influx of Exchange-Traded Funds (ETFs), suggesting a maturing market structure.
Hayes’ warning underscores the increasing sensitivity of cryptocurrency prices to traditional economic fragility, positioning macroeconomic factors as a primary driver for potential near-term declines.