Bitcoin Price Plunges to $99K: Arthur Hayes Predicts $70K Drop Before Massive $250K Surge

Highlights:

• Bitcoin price falls below $99,000 as traders book profits ahead of FOMC meeting.
• Over $860 million liquidated as Crypto Fear and Greed Index shifts to “Neutral” at 55.
• Arthur Hayes predicts Bitcoin will drop to $70K before soaring to $250K by year-end.

Bitcoin (BTC) dropped below $99,000 on Monday as traders locked in profits ahead of the upcoming two-day FOMC meeting on January 28-29, which is unlikely to suggest a rate cut. Historically, such events have influenced Bitcoin prices as investors adjust their preferences for risk assets. At the time of writing, BTC has slightly rebounded, trading at $99,243, down 5.19% in the past 24 hours.

Top altcoins also see sharper corrections, with Ethereum dropping 6.96% to $3,073, erasing its weekly gains. XRP has fallen below the critical $3 level, and a daily close under this mark could lead to further declines. Solana has plunged 11.27%, while Dogecoin (DOGE) is down 10.02%. Investors remain uncertain about the chances of an altseason starting in Q1 2025.

Bitcoin has struggled to stay above $100,000, often falling below this level. In the past two months, market indecision has created a challenging period. Bitcoin is moving between $89,000 and $109,000, signaling the market may be waiting for a sentiment shift before a clearer direction emerges.

Over $860 Million Liquidated as Sentiment Shifts to Neutral

Coinglass data shows that more than 313,830 traders were liquidated during the price drop, totaling $860.05 million in liquidated positions. Long positions were hit hardest, accounting for about $795 million, while short liquidations totaled $65 million. The biggest liquidation occurred on the Binance exchange, with a massive $300 million position wiped out.

As the market struggles, the Crypto Fear and Greed Index has shifted to a “Neutral” stance, now at 55. With growing caution, more traders are taking short positions, betting against Bitcoin’s recovery.

Arthur Hayes Forecasts Bitcoin Price Crash to $70K

In his recent post on X, BitMEX CEO Arthur Hayes forecasts a “mini financial crisis” where Bitcoin could drop to $70,000 before rebounding in a major bull run to $250,000. He believes the U.S. Federal Reserve will return to money printing at this time.

Reversing the order of my tryptic essay series.

The Ugly will be published tomorrow morning. 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. pic.twitter.com/XxT4VFyzu4

— Arthur Hayes (@CryptoHayes) January 27, 2025

Long-Term Bitcoin Holders Sell While Experts Predict Continued Bull Run

On-chain data shows that long-term Bitcoin holders have been selling their BTC holdings over the past week. Crypto analyst Ali Martinez noted that the total supply held by long-term holders has decreased by over 75,000 BTC. This indicates strong profit-taking by long-term investors.

The total #Bitcoin supply held by long-term holders has declined by over 75,000 $BTC in the past week! pic.twitter.com/O2eOv9zl5u

— Ali (@ali_charts) January 26, 2025

However, CryptoQuant CEO Ki Young Ju believes the Bitcoin price bull run isn’t over yet. He said the market is in its late stage but still has room to grow. He believes new retail investors are joining, and Trump’s influence could keep the bull run going for a few more quarters.

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.… https://t.co/fEmjJGIjPS

— Ki Young Ju (@ki_young_ju) January 26, 2025

The cryptocurrency market is gearing up for the first FOMC meeting since Trump took office. His inauguration and crypto orders created excitement, but macro indicators will now guide the market’s direction. Trump plans to ask the U.S. Federal Reserve to lower interest rates to boost the economy.