How Low Can Bitcoin Go? Arthur Hayes Believes the Bottom is Near

The cryptocurrency market experienced major turbulence after U.S. airstrikes on Iran’s nuclear facilities led to over $1 billion in crypto liquidations. Bitcoin dropped below $100,000, breaking a 44-day streak above the six-figure mark. As the market consolidates downward, analysts point to support levels at $100K and $92K, with resistance at $107K and $ 112K. Fears of escalating war, possibly influenced by political tensions, have caused widespread market instability.

Despite the short-term volatility, analysts from Altcoin Daily view the current dip as a potential buying opportunity. Historical trends suggest that markets often rally during wartime due to government spending and money printing. While a large-scale war seems unlikely, any signs of de-escalation could spark a relief rally. A Bitcoin drop into the low $90K or even $80K range would still not break the market structure, according to analysts.

Arthur Hayes, co-founder of BitMEX, believes central banks will print more money to stabilize the economy, which he thinks will strengthen Bitcoin’s position as a safe-haven asset. Hayes suggests that Bitcoin’s true value will soon be revealed as central banks continue their money-printing strategies.

Glassnode reports that Bitcoin’s corrections since April have bounced off the Short-Term Holder Realized Price, but the Short-Term Holder MVRV has dropped to just 0.03. This indicates that recent buyers are experiencing only 3% unrealized gains, suggesting growing pressure on new investors.

The Middle East continues adopting crypto, with sovereign wealth funds in countries like Saudi Arabia and Bahrain investing in blockchain for national infrastructure. Additionally, Russia reportedly holds over $25 billion in crypto assets as part of its strategic reserves. Bitcoin is increasingly seen as a store of value, akin to physical gold, during uncertain times.

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Billionaires, including Mexico’s third-richest person, are adding Bitcoin to their portfolios, with some holding up to 80% in BTC. U.S. states like Texas, Arizona, and New Hampshire are also establishing strategic Bitcoin reserves, signaling growing institutional confidence in the cryptocurrency market.

Despite the current volatility, analysts emphasize that Bitcoin’s long-term prospects remain strong. With increasing blockchain adoption, the rise of government money printing, and growing institutional demand, the fundamental thesis for Bitcoin remains optimistic. Investors are encouraged to stay informed, stay invested, and consider the current market shakeout as a temporary dip.