Arthur Hayes warns of a potential BTC correction, predicting a drop to $75k

Arthur Hayes, a closely followed crypto trader and former CEO of BitMex, has warned of a potential correction in Bitcoin’s price, predicting it could drop to the $70k-$75k range. This warning comes after Bitcoin recently fell below its key support level, dropping by nearly 5.5% in the past day and falling under the $100k mark for the first time since President Donald Trump’s inauguration on January 20. This price decline occurred alongside a broader downturn in the cryptocurrency market, which also saw losses ranging from 9% to 17% for major cryptocurrencies such as Ethereum, XRP, Solana, Dogecoin, and Cardano.

The sharp downturn was triggered by an $854.39 million mass liquidation event, according to data from CoinGlass, which wiped out nearly $794.5 million in leveraged long positions within a 24-hour period.

Hayes suggested that a “mini financial crisis” could be unfolding, and he anticipates Bitcoin might face further price corrections as a result. The recent market jitters have also been linked to the debut of China’s AI app, DeepSeek, which is seen as a competitor to U.S.-made ChatGPT. DeepSeek has gained rapid popularity, quickly climbing to the top of the Apple App Store’s free app rankings despite its modest budget of $10 million. In contrast, ChatGPT was developed with significantly more financial backing.

Market analyst Adam Kobeissi also pointed to the launch of DeepSeek as a potential trigger for the recent crash, noting that it has sparked fear among traders. “Risk-off is the theme as DeepSeek scares investors,” Kobeissi wrote on January 27.

The current market conditions are adding to the uncertainty, with investors and traders on edge as they react to these new developments.