Arthur Hayes, Chief Investment Officer of Maelstrom and co-founder of BitMEX, anticipated a sharp correction in Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) on Saturday due to potential macroeconomic jitters.
What Happened: In an X post, Hayes believed that a speculated U.S. tariff bill in the third quarter, coupled with the release of the lower-than-expected July jobs data, is likely to exert increased macroeconomic pressure.
“No major econ is creating enough credit fast enough to boost nominal GDP,” Hayes noted. “So BTC tests $100,000, ETH tests $3,000.”
Hayes, a well-known economic commentator and cryptocurrency advocate, sold over $8 million in ETH and a significant amount of Pepe (CRYPTO: PEPE) meme coin, citing the impending pullback as the reason.
See Also: Bitcoin As ‘Neutral Reserve Asset’ Could Overhaul Financial System, Says Analyst
Why It Matters: The prediction comes in the wake of significant macroeconomic developments. July’s labor market data suggested early signs of weakness, with only 73,000 jobs added, well below the expected 110,000. Moreover, the Personal Consumption Expenditures price index, considered the Federal Reserve’s preferred inflation gauge, jumped to 2.6% year-over-year in June from 2.3% in May, beating the 2.5% forecast.
Meanwhile, the U.S. initiated a new round of tariffs on 69 countries, adding to the growing concerns about the negative risks associated with President Donald Trump‘s trade policies.
Hayes’ cryptocurrency predictions, particularly those regarding Bitcoin, rely on fiat liquidity expansion. He advises traders to understand the implications of money printing. He previously projected $250,000 year-end price target for BTC and $1 million by 2028.
Price Action: At the time of writing, BTC was exchanging hands at $114,865.09, up 1.34% in the last 24 hours, according to data from Benzinga Pro. ETH was trading at $3,555, up 3.46%.
Photo Courtesy: artjazz on Shutterstock.com
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