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- Bitcoin’s price dipped to just above $80,000, sparking extreme fear in the market as volatility continues to shake investor confidence.
- Arthur Hayes’ prediction of a Bitcoin drop to $75,000 is closer to reality, with the asset already testing $78,000 and showing signs of further weakness.
- Options market data reveals over $2 billion in open interest at key levels, increasing the likelihood of heightened price swings and potential liquidations.
Bitcoin’s price continued its descent over the weekend, dipping to just above $80,000 on March 10 in what analysts are calling an ugly start to the week. The leading cryptocurrency has been grappling with heightened volatility, prompting speculation about its next major support level.
Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, weighed in on the market downturn, warning that Bitcoin is likely to retest the $78,000 support zone. “If it fails, $75,000 is next in the crosshairs,” he stated on X, emphasizing that significant open interest in Bitcoin options could amplify market turbulence.
Options market data from Deribit indicates substantial open interest at key strike prices $696 million at $70,000, $659 million at $75,000, and $680 million at $80,000. These positions suggest that derivative traders are positioning for heightened price swings, potentially leading to further sell-offs if critical levels are breached.
Over the past 24 hours, Bitcoin has dropped more than 5%, touching a low of $80,124 before recovering slightly to trade at $82,166 at press time.
The asset has been highly volatile in recent weeks, fluctuating between $80,000 and $95,000 amid regulatory uncertainty and geopolitical developments. Recent U.S. trade policies and White House crypto-related announcements have further fueled market instability.
Arthur Hayes Bitcoin Warning Comes True
Hayes previously forecasted that Bitcoin could dip to $75,000 before eventually rallying to $250,000 within this cycle. In February, he cautioned that the market was entering a ‘goblin town’ phase, where Bitcoin could see a sharp decline to $70,000 as large institutional players unwind their ETF holdings. His prediction appears to be playing out, with Bitcoin hitting its 2025 low of $78,000 on February 28, and signs pointing to a possible retest of that level.
Market research firm 10x Research described the recent downturn as a “textbook correction,” noting that nearly 70% of all selling pressure came from investors who entered the market within the last three months. This suggests that newer market participants are panic-selling in response to the decline, exacerbating the price drop.
Adding to market jitters, the Bitcoin Fear & Greed Index has plunged back into “extreme fear” territory, registering a reading of 20 on March 10. The increased anxiety among traders comes ahead of two key inflation reports in the United States this week, which could shape Federal Reserve monetary policy. Should inflation continue to rise, further interest rate hikes could dampen risk appetite, adding to Bitcoin’s struggles.
Meanwhile, global trade tensions are adding another layer of uncertainty. Canada has retaliated against newly imposed U.S. tariffs with its own set of levies following the election of former central banker Mark Carney as the new Liberal Party leader. In a sharp rebuke of Trump’s trade policies, Carney declared in his March 9 victory speech, “Americans should make no mistake In trade, as in hockey, Canada will win.”
As Bitcoin navigates this turbulent landscape, investors will be closely watching key support levels and macroeconomic developments for further clues on where the market heads next.
Related | Trump to Host White House Crypto Summit at Scheduled Time
