Arthur Hayes Warns Of Potential 19% Bitcoin Crash, Abandons Major Positions

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BitMEX co-founder Arthur Hayes has issued a sobering warning to crypto investors, predicting an imminent 19% Bitcoin crash. This foreboding report comes as Hayes significantly reduced his exposure to major cryptocurrencies, sparking uncertainty and doubt in the market. 

Bitcoin Faces Potential 19% Price Crash

On August 2, Hayes took to the X social media platform to sound the alarm on potential market turbulence ahead. The BitMEX co-founder forecasted that the Bitcoin price could crash by a whopping 19%, possibly retesting the $100,000 level and marking one of its sharpest declines in recent weeks. 

Notably, Hayes’ grim outlook extends beyond Bitcoin to the world’s largest altcoin, Ethereum. He believes that while Bitcoin plunges to former lows, ETH could fall to $3,000, representing a sharp decline of approximately 18% from its current price of $3,634. The BitMEX co-founder has attributed these bearish short-term forecasts to macroeconomic stress, particularly in the United States (US). 

Hayes offered a sobering take on the state of the global economy and its potential implications for the digital asset market. He believes that the US is on the brink of a significant financial shift, with a “tariff bill” potentially coming due in the third quarter of 2025 and set to weigh heavily on market sentiment. 

Notably, the BitMEX co-founder’s bearish warnings come shortly after the release of a cooler-than-expected US Non-Farm Payrolls (NFP) report. The data indicated a slowdown in job creation, which in turn sparked concerns about the Federal Reserve’s (FED) ability to continue sustaining nominal Gross Domestic Product (GDP) growth without more aggressive credit creation. 

Hayes argued that no major global economy is currently expanding credit at a pace sufficient to support nominal GDP growth. He warns that this stagnation could create conditions that could put downward pressure on risk assets like cryptocurrencies. Notably, the BitMEX co-founder’s bearish outlook for both Bitcoin and Ethereum underscores the impact that macroeconomic and geopolitical factors tend to have on the digital asset market.

Hayes Dumps Millions In Crypto Holdings

Backing up his warning with actions, Hayes has begun offloading a substantial portion of his crypto holdings. According to blockchain data shared by Lookonchain via Arkham Intelligence, the BitMEX co-founder liquidated a large portion of his portfolio on the same day he issued his foreboding BTC and ETH forecast. 

Within just six hours, Hayes reportedly sold approximately 2,373 ETH valued at $8.32 million, along with 7.76 million ENA tokens worth $4.62 million. He also exited a massive position in PEPE, selling 38.86 billion tokens for roughly $414,700. 

The scale and speed of these withdrawals suggest that Hayes may be repositioning himself ahead of anticipated market volatility. As one of the most influential figures in the crypto space, his moves have sparked debates about whether these recent liquidations could signal the beginning of a broader correction.

Featured image from Pixabay, chart from Tradingview.com

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