Bitcoin prices continue to fall, reaching $80,000 in what experts are describing as an 'ugly start' to the week. Financial analyst Arthur Hayes provides forecasts regarding future support levels.
Bitcoin Price Dynamics
Bitcoin has plunged over 5% in the past 24 hours, hitting $80,124 before a slight recovery to $81,395. Over the past two weeks, the asset has swung between $80,000 and $95,000 amid trade tariff-related news and White House crypto announcements.
Analysis by Arthur Hayes
Arthur Hayes, BitMEX co-founder and Maelstrom chief investment officer, suggests that Bitcoin may retest the $78,000 level. If it fails to hold, $75,000 could be the next target. He also noted significant Bitcoin options open interest in the $70,000 to $75,000 range, indicating potentially violent market movements.
Market Reaction and Expectations
Analysts from market research firm 10x Research labeled this a 'textbook correction,' highlighting that approximately 70% of all selling was from investors who bought within the last three months, reflecting 'dominance of recent entrants panic-selling.' The Bitcoin Fear & Greed Index has returned to 'extreme fear' with a reading of 20. Volatility may continue as key U.S. inflation reports due this week could influence monetary policy.
Bitcoin's market is experiencing significant fluctuations as analysts continue to watch the price dynamics and await the outcome of inflation reports that may impact monetary policy. Market participants should be prepared for potential increased volatility in the near future.
