- Bitcoin has dropped, triggering $406M liquidations, part of $2.21B total market losses.
- Arthur predicts Bitcoin to dip to $75K before hitting $250K due to liquidity.
- Global money printing could boost Bitcoin’s value, potentially reaching $250K or $1M.
In the last 24 hours, Bitcoin (BTC) has seen a sharp decline, with its price dropping by 6.90%, now sitting at $94,184. This drop triggered massive liquidations, with $406.73 million in Bitcoin positions wiped out, part of a broader $2.21 billion total market liquidation.
As a result, market sentiment has shifted. The Fear & Greed Index currently sits at 39, indicating widespread fear among investors. Bitcoin’s dominance remains strong at 61.57%, while Ethereum follows at 9.94%, as market participants navigate the ongoing turbulence in the crypto space.
Why the Bitcoin Price Could Hit $75,000
CIO of Maelstrom and analyst Arthur Hayes predicts Bitcoin will hit $75,000 before reaching $250,000. Economic factors might be contributing to the volatility, which he expects to result in Bitcoin temporarily dipping to $75,000. This dip will happen because after Trump’s election, Bitcoin’s price surged ahead of global economic trends, driven largely by liquidity. However, according to Hayes, the liquidity situation hasn’t met expectations, contributing to the recent dip.
Additionally, Hayes points to the Federal Reserve’s actions, such as cutting interest rates in 2022, which influenced global markets and Bitcoin’s price. These factors are fueling volatility, with Hayes expecting a temporary drop to $75,000 before Bitcoin climbs to $250,000.
Related: Is Ethereum Making a Comeback? Analyst Predicts New ATH in February
Why Bitcoin’s Price Could Reach $250,000 and Beyond
He believes Bitcoin will eventually hit $250,000 due to massive credit creation by major economies. The U.S. plans to print trillions of dollars, and other countries like China, Japan, and Europe are doing the same to stimulate their economies. This could lead to inflation, making hard assets like Bitcoin more valuable.
Related: Bitcoin to $167K? Analyst: Stock-to-Flow Model Says Maybe
Apart from Hayes, there are other experts who echo this sentiment, expecting Bitcoin’s price to rise significantly, with some even predicting it could reach $1 million in the future. With global economic shifts, holding Bitcoin is seen as a way to protect against growing financial risks.
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