In a recent podcast appearance, Arthur Hayes, the former head of BitMEX, made a sobering prediction about the largest cryptocurrency by market capitalization, Bitcoin (BTC).
Hayes believes that Bitcoin’s expected climb to a record high of $70,000 this year is unlikely to materialize, dampening investors’ and traders’ hopes. However, he points to a potential bullish turn in 2024, driven by a major event that could shape the trajectory of the market.
Bitcoin rises to $70,000 to be delayed
During an episode of ‘What Bitcoin Did’ podcast, Hayes shared his take on Bitcoin’s price trajectory. He indicated that crossing the $70,000 milestone is not expected to occur in 2023.
Instead, Hayes suggests that next year’s expected halving will play a critical role in determining the direction of the market. While the slowdown may disappoint some, he remains optimistic about a potential breakthrough in the near future.
The former head of BitMEX believes the upcoming 2024 halving, an event that halves Bitcoin’s block reward, will be a pivotal moment for the market. He suggests crossing the $70,000 mark is likely to happen during that time.
However, his long-term prognosis raises concerns about an impending “blow-off summit” in 2025 or 2026, which could potentially signal a major social event or upheaval he calls “Armageddon.” Hayes attributes this potential turmoil to factors such as excessive money printing and growing global discontent.
Hayes noted:
We have this halving next year, 2024. I think that’s going to be a good year. I don’t think we’ll get $70,000 this year. Next year we cross that barrier and then we get the blowout top 2025, 2026. And then it’s Armageddon.
BTC Latest Price Action
Meanwhile, Bitcoin has shown a potential uptick over the past week. The largest crypto asset by market capitalization is up 4.3% over the past week. In the past 24 hours, BTC has seen a gain of 2.8%.
At the time of writing, Bitcoin is currently trading at USD 27,925 after trading slightly above USD 28,000 on Sunday. Bitcoin’s trading volume has increased from $5 billion last Monday to $12 billion in the past 24 hours, indicating possible upside momentum. In addition, the asset’s market cap has also increased by more than $20 billion in the past 7 days.
However, oneAccording to Hayes, the increased practice of quantitative easing, which injects more money into the economy, has created an unstable situation that could explode in the third and fourth quarters of this year.
He warns of rising geopolitical tensions and a lack of confidence, claiming that these factors are creating a “tinder box” that could trigger a period of immense volatility for Bitcoin. Hayes emphasizes the importance of navigating these uncertain times, both for individuals seeking financial stability and for the cryptocurrency market as a whole.
Featured image from Shutterstock, chart from TradingView