Bitcoin has dropped below $77,000 for the first time since November 10th, sinking to $76,822 before rebounding a bit to around $79,000 at press time, per data from CoinGecko.
That’s a 30% decline from its all-time high of $110,000, and the sell-off isn’t just hitting crypto—stocks are also in freefall. But according to Arthur Hayes, traders need to wait it out.
“The plan: Be fucking patient,” Hayes said in a post on X. He predicted Bitcoin would likely bottom at $70,000, which would be a 36% correction from its peak—something he called “very normal for a bull market.”
But he made it clear that crypto isn’t bouncing back on its own. Hayes said the next steps were for stocks to crash, a major traditional finance institution to go under, and central banks to start printing money again before things turn around. “Then you load up the truck,” he said.
Hayes also said, in a separate post, that:
“BTC trades 24/7, anyone globally with internet can trade, it cannot be printed, failure results in bankruptcy or liquidation. No country’s finances are tied to BTC going up in price. Stocks trade 8/5, only certain people can trade them, they cannot be printed, failure if you are politically connected results in a bailout. Marginal tax receipts in Pax Americana are directly tied to the stock market. It will get a bailout, it just depends on whether your portfolio is still alive when it occurs.”
Stock market tanks while Bitcoin slides
This crash isn’t just a Bitcoin problem. The Nasdaq 100 dropped 1,050 points in a single day, a 5.8% loss, and after-hours trading saw another 300-point drop. If the market had stayed open, it would have been just 1.2% away from a circuit breaker halt, something that only happens when things are in full panic mode.
Futures trading isn’t looking any better. S&P 500 futures slipped 0.4%, Nasdaq-100 futures fell 0.9%, and Dow Jones futures dropped slightly, down 20 points. But Delta Air Lines took the biggest hit, plunging 11% after-hours after slashing its profit and sales forecast due to weak U.S. travel demand.
Meanwhile, the S&P 500 has now logged three consecutive losing weeks, with Monday’s session adding to the pain. The Dow Jones lost nearly 900 points, falling below its 200-day moving average for the first time since November 1, 2023. The Nasdaq Composite had its worst day since September 2022.
“This is starting to feel like a capitulation in the market,” said Anastasia Amoroso, chief investment strategist at iCapital, on CNBC’s Closing Bell. She said markets were reaching oversold levels, predicting that things would either hit rock bottom immediately or sometime this week.
Peter Schiff slams Bitcoin, investors wait for economic data
Peter Schiff, known for his anti-Bitcoin stance, wasted no time in trashing crypto after the latest drop. “Now that Bitcoin fell below $77K, it’s down 30% from its January record high,” Schiff wrote on X. He questioned how the U.S. government could consider Bitcoin as a reserve asset when it can lose value so quickly. “The rationale will be even harder to see when it’s down 50%,” he added.
Schiff then tied the crash to U.S. manufacturing, saying that with crypto millionaires losing money, the country would need to bring back industrial jobs.
Investors are now bracing for key economic reports this week. The Job Openings and Labor Turnover Survey (JOLTS) comes out on Tuesday, followed by the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. These reports could decide whether inflation fears will push the Federal Reserve toward more aggressive rate cuts.
Market volume also spiked during Monday’s trading session. More than 82% of stocks on the Nasdaq ended the day in the red, while 76% of New York Stock Exchange stocks also dropped. Declining stocks outnumbered advancing ones 4 to 1, and new 52-week lows on the Nasdaq hit 413, compared to just 69 new highs.
Meanwhile, crypto-related stocks collapsed. Coinbase dropped 17.6%, Robinhood fell 19.8%, and MicroStrategy, now rebranded as Strategy, saw its stock price tank by 16%.
Ark Invest’s Cathie Wood believes:
“The market is discounting the last leg of a rolling recession, which will give the Trump Administration and the Powell Fed many more degrees of freedom than investors expect, setting up the US economy for a deflationary boom in the second half of this year.”
Bitcoin ETFs see outflows, Trump comments on recession
The Bitcoin ETF market has also taken a beating. Outflows totaled $867 million last week, making it the fourth straight week of withdrawals, according to CoinShares. That brings the total four-week outflows to $4.75 billion, as bearish sentiment continues to push prices down.
The broader crypto market took another hit over the weekend, with Bitcoin briefly dropping to $80,000 for the first time since February 28th.
Adding to the uncertainty, Donald Trump weighed in on the economy during a Fox News interview, calling it a “period of transition.” His comments followed Treasury Secretary Scott Bessent’s statement that the U.S. could go through a “detox period” as the administration cuts federal spending.
Goldman Sachs has also revised its economic growth forecast downward, citing concerns over Trump’s tariff policies. But despite all the chaos, Amoroso dismissed recession fears, pointing to strong payroll reports and steady consumer spending at 3-4%.
Meanwhile, the White House is downplaying the weeks-long stock market sell-off, insisting that recent moves by business leaders suggest a brighter outlook for the U.S. economy.
“We’re seeing a strong divergence between animal spirits of the stock market and what we’re actually seeing unfold from businesses and business leaders,” the White House told reporters Monday afternoon.
“The latter is obviously more meaningful than the former on what’s in store for the economy in the medium to long term,” said the White House.
Still, the combination of a weak stock market, crypto outflows, and uncertainty in macroeconomics has traders on edge. Many are waiting for central banks to step in, just like Hayes predicted. The Federal Reserve, the PBOC, the ECB, and the BOJ could all be forced to ease policies to support their economies.
For now, though, the message from Hayes is clear: Wait.
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