BitMEX co-founder Arthur Hayes predicts a sharp decline in the cryptocurrency market, forecasting that Bitcoin could fall to $100,000 and Ethereum to $3,000.
His warning is based on a combination of macroeconomic pressures and weak credit creation in the global economy.
Cryptocurrency market loses $372 million after Hayes' warning
In a post on X (formerly Twitter) on August 2nd, Hayes mentioned the expected US tariff bill in the third quarter as a reason for his prediction. He also pointed to widespread economic challenges as contributing factors.
Furthermore, the BitMEX co-founder noted that major economies are not expanding credit quickly enough to increase nominal GDP. According to him, this could lead to an adjustment in the cryptocurrency market.
Y? US Tariff bill coming due in 3q … at least the mrkt believes that after NFP print. No major econ is creating enough credit fast enough to boost nominal gdp. So $BTC tests $100k, $ETH tests $3k. Come see my @WebX_Asia Tokyo keynote Aug 25 for more info. Back to the beach. https://t.co/zuHlwgQKC7
— Arthur Hayes (@CryptoHayes) August 2, 2025
Hayes' downward prediction seems to align with the overall market sentiment. The total cryptocurrency market capitalization has fallen by more than 3% in the last 24 hours, currently standing at $3.76 trillion.
According to BeInCrypto data, Bitcoin experienced significant volatility in the past 24 hours. It dropped from nearly $114,000 to $112,113 before slightly recovering to $113,494.
Ethereum showed a similar trend, falling from over $3,500 to $3,373 before partially recovering.
This sharp market decline triggered $372 million in liquidations, affecting over 115,000 traders.
Long traders expecting a market rebound led the liquidations, accounting for about $322 million in losses.
In contrast, short traders anticipating further price drops experienced only $65 million in liquidations.
Across assets, Ethereum led the liquidations with approximately $119 million, followed by Bitcoin at $62 million.
Despite the decline, Eric Trump, son of former US President Donald Trump, encouraged Bitcoin and Ethereum investors to take advantage of the lower prices. He suggested that now is a good time to buy the dip.
Let me say it again:
— Eric Trump (@EricTrump) August 2, 2025
₿uy the dips!!! $BTC $ETH https://t.co/VSOvTgnlOT
Notably, his previous Bitcoin purchase advice saw the asset rise by 15%, while Ethereum increased by 20%.
Investors are hoping that Trump's current advice will reflect the positive market outcomes of the past.
