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Bitcoin eroded market optimism with a significant retreat in response to President Donald Trump’s “Liberation Day” tariffs.
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BitMEX founder Arthur Hayes has highlighted a key level to watch amid the rout.
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Hayes has maintained the belief that Bitcoin still has a chance of more than doubling in price this year.
After days of anxious waiting, President Donald Trump’s “Liberation Day” came and went. As anticipated, equity and cryptocurrency markets did not like the idea of fresh and broad tariffs. A broad market sell-off ensued in after-hours trading as the president read off his chart outlining “reciprocal tariffs” on almost every country in the world, including uninhabited islands.
Bitcoin, in particular, dropped 5% from $88,500 to just over $82,000 and continues to trade near these lows, eroding earlier market optimism. Amid the rout, one prominent analyst has pointed to a key level to watch.
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According to BitMEX founder and Maelstrom CIO Arthur Hayes, the $76,500 price point is the level to watch for Bitcoin.
“if BTC can hold $76.5k btw now and US tax day Apr 15, then we are out of the woods,” he wrote in a Wednesday X post following Trump’s tariff announcements.
The price level aligns with the three-month price low Bitcoin hit on March 11. On March 20, Hayes speculated that the level was the line in the sand for the asset, suggesting that the worst of the recent correction is over and that it is unlikely the asset will break below the level before making a run for new highs.
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For confirmation of Hayes’ analysis, bulls will want to see a strong bounce from that level should Bitcoin retest it.
The analyst’s view comes as he continues to maintain that the leading digital asset is on course to more than double in price this year.
Specifically, Hayes maintains that Bitcoin can still hit $250,000 by the end of the year.
This prediction is based on the belief that the Federal Reserve will have no choice but to pivot from quantitative tightening to quantitative easing due to political pressure as Trump seeks to reduce the U.S.’s trade deficit from 7% to 3% by 2028. In this scenario, the liquidity created is expected to boost risk markets, including cryptocurrencies like Bitcoin.
In the analyst’s telling, this pivot may have already started following remarks from Fed Chair Jerome Powell in March. He announced a slowdown of the central bank’s quantitative tightening efforts that kicked off Tuesday while stating that he now expected tariff inflation to be “transitory.”
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With the move to slow down quantitative tightening, Hayes argued that the apex bank was already on course to create an extra $240 billion in liquidity.
“If my analysis of the Fed’s major pivot from QT to QE for treasuries is correct, then Bitcoin hit a local low of $76,500 last month, and now we begin the ascent to $250,000 by year-end,” he submitted in an essay released on Tuesday.
Meanwhile, Hayes’ expectation of greater market liquidity is not limited to the U.S. The analyst also expects China and Europe to join in the money printing—the former to defend the dollar-yuan exchange rate, the latter to build armies as the U.S. under Trump looks set to step back from guaranteeing its protection.
Nonetheless, at the time of writing, Bitcoin continues to fall, trading below $82,000 in an over 5% decline over the past 24 hours.
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This article If Bitcoin Holds This Level Between Now And April 15, Arthur Hayes Says ‘We Are Out Of The Woods’ originally appeared on Benzinga.com
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