BitMEX co-founder Arthur Hayes has forecasted a sharp downturn for the crypto market, predicting that Bitcoin could fall to $100,000 and Ethereum to $3,000.
His warning follows a combination of macroeconomic pressures and weak credit creation across global economies.
Crypto Market Hit by $372 Million Losses Following Hayes’ Warning
In an August 2 post on X (formerly Twitter), Hayes attributed his prediction to the upcoming US tariff bill, expected in the third quarter. He also pointed to broader economic challenges as a contributing factor.
Additionally, the BitMEX co-founder pointed out that no major economy is expanding credit quickly enough to boost nominal GDP. According to him, this could lead to a correction in the cryptocurrency market.
Hayes’ bearish stance seems to align with the broader market sentiment. The total cryptocurrency market capitalization has dropped by more than 3% in the last 24 hours, now standing at $3.76 trillion.
According to BeInCrypto data, Bitcoin experienced significant volatility during the last 24 hours, dipping from nearly $114,000 to a multi-week low of $112,113. However, it has slightly recovered to $113,494 as of press time.
Ethereum followed a similar trend, falling from over $3,500 to $3,373, only to regain some ground.
This sharp market downturn has triggered nearly $372 million in liquidations over the past 24 hours, affecting more than 115,000 traders.
Long traders, betting on a market rebound, dominated the liquidation volume, accounting for around $322 million of the losses.
On the other hand, Short traders, who expected further price declines, saw only $65 million in liquidations.
Across assets, Ethereum led the liquidation sweep, with around $119 million liquidated, followed by Bitcoin at $62 million.
Despite the pullback, Eric Trump, son of US President Donald Trump, encouraged Bitcoin and Ethereum investors to take advantage of the lower prices. He suggested that now is a good time to buy the dip.
Notably, his previous advice to purchase Bitcoin during price corrections saw the asset rise by 15%, while Ethereum increased by 20%.
Investors now hope that Trump’s current call will similarly mirror the positive market outcomes of the past.
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