Arthur Hayes Predicts Bitcoin May Drop to $90K Before Next Bull Market Rally

Renowned crypto analyst Arthur Hayes has issued a warning that Bitcoin could experience a temporary pullback to around $90,000 before continuing its upward trajectory. In his latest blog post titled 'Quid Pro Stablecoin,' the former BitMEX CEO presents a comprehensive macroeconomic analysis of factors that may influence cryptocurrency markets in the coming months. Hayes suggests we may see sideways or slightly downward price movements until at least the late August Jackson Hole economic symposium. The anticipated correction stems from potential liquidity tightening if the U.S. Treasury replenishes its General Account (TGA), which could pressure risk assets including cryptocurrencies. Hayes highlights the evolving role of traditional financial institutions in crypto, particularly following the Senate's passage of the GENIUS Act that paves the way for bank-issued stablecoins. These regulated, Fed-backed digital dollars could fundamentally alter crypto liquidity dynamics by potentially redirecting trillions in bank deposits into Treasury-backed instruments and subsequently crypto markets. While Hayes maintains a bullish long-term outlook for Bitcoin, he advises caution in the near term, suggesting the Maelstrom fund might reduce Bitcoin exposure if macroeconomic conditions deteriorate.