Bitcoin’s trading activity exploded on Monday with volume surging 222 % to$ 55.3 billion, as Maelstrom Fund CIO Arthur Hayes predicted a sharp correction that could drag the price as low as$ 70, 000 before an eventual rise to$ 250, 000 this year.

The alpha crypto is currently trading just a smidge above the$ 99, 000 level, down 8.67 % from its January 20 all-time high of roughly$ 108, 000, data from CoinGecko shows.

However, forced foreclosures in the crypto compounds business spilled out some$ 850 million in the past 24 hours, with much jobs accounting for the majority of loss, Coinglass data shows.

Hayes warns of an impending “mini economic problems” that may cause the revision, linking market vulnerability to broader concerns about U. S. modern dominance. A possible “resumption of wealth printing”, is also on the ocean, Hayes predicted.

His analysis points to the latest breakthrough of Chinese AI firm Deepseek as a possible catalyst for international investors to reevaluate their heavy positions in U.S. tech and bonds.

Compounded issues

Profit-taking appears to be driving new business movements, according to data from Bloomberg showing planned marketing stress around Bitcoin’s$ 108, 786 top from January 20.

Concentrated sell pressure in the$ 104, 000-$ 108, 000 range was also noted, with Bitcoin’s 8.2 % weekly decline outpacing the broader crypto market’s 5.50 % drop. This divergence, combined with the spike in volume, indicates strategic profit-taking rather than fundamental weakness, Bloomberg’s analysts claim.

The surge in trading volume to$ 55.3 billion suggests large-scale position adjustments, according to data. According to recent statistics from Bitcoin mining pool CloverPool, mining difficulty for the Bitcoin network recorded its first notable decrease since September 2024.

Given the 2 % difficulty drop that occurs after eight consecutive adjustments on the positive end, a shift in the network’s dynamics is expected.

According to the analysis, adjustments to Bitcoin mining difficulty typically lead to a lower level of computational power on the network side, which adds to the short-term bearish signals. Miners may be adjusting their operations in response to recent price fluctuations and profitability concerns, with a decrease of 110.45 trillion to 108.11 trillion from its previous record of 110.45 trillion.

Don’t take a screenshot just yet

In general, the crypto market exhibits signs of strain, with Bitcoin‘s performance falling behind that of other digital asset tickers. While the global crypto market has experienced a 5.5 % decline over the past week, Bitcoin has experienced a decline of 8.2 %, which suggests that the main asset is experiencing more sales pressure.

Despite the near-term bearish predictions, Hayes maintains an optimistic longer-term outlook, suggesting that a resumption of monetary easing could drive Bitcoin to$ 250, 000 by year-end.

Hayes ‘ forecast comes as Bitcoin’s market capitalization holds at$ 1.97 trillion, retaining its position as the leading digital asset by market capitalization.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Share This Story, Choose Your Platform!