BitMEX CEO Arthur Hayes and a pseudonymous trader known as "Crypto Capo" both predicted the Bitcoin (BTC) price to drop to the $3,000s in early 2022. In the near-term, both expect Bitcoin to retest the $iii,000 region once again.

In the BitMEX Crypto Trader Digest letter of the alphabet dated April 9, 2022, Hayes said that as the U.S. stock market sees another leg down, all asset classes could "puke," causing Bitcoin price to correct.

Prior to the March 12 drop to $three,600, "Crypto Capo" forecasted a fall to the depression $3,000s. This week Crypto Capo again forecast that Bitcoin is probable to drib to the $2,100 to $3,000 range.

Hayes believes stocks will plunge and Bitcoin will follow

In the curt-term, Hayes seemingly anticipates the U.S. stock market will pull back, after an ostensibly potent rebound that began in tardily March.

The recent $ii trillion Senate stimulus package organized by the Federal Reserve aims to prevent some other 2008-esque market crash and it appears that this has led to an increased appetite for stocks in recent weeks.

Historical information suggests, however, that amid economic turmoil, the U.S. stock market place tends to encounter several major fakeouts.

Given that at that place is limited progress in containing the coronavirus pandemic in the U.S. and Europe, global manufacturing has ground to a halt, and major European economies appear to be in a free fall, high-risk assets like stocks and Bitcoin are vulnerable to a big correction.

Hayes explained:

"Bitcoin will be owned unlevered. Could the price retest $3,000, absolutely. As the SPX rolls over and tests 2,000 expect all nugget classes to puke again. As violent as the Q1 collapse in asset values was, we have near 100 years of imbalances to unwind the ancien regime."

On March 12, the Bitcoin price crashed to $three,600 mainly on futures exchanges including BitMEX, OKEx and Binance Futures, while spot markets remained to a higher place $4,000.

Whether BTC would retest the recent $3,600 low or consolidate to the $4,500 to $4,800 support range remains to exist seen merely another extreme selloff could exist triggered by the U.S. stock market making a lower low.

Why Hayes thinks BTC will yet end 2022 at $20,000

Nearly countries, peculiarly the U.S. and Europe, are in a state of panic as the number of coronavirus cases continue to surge on a mean solar day-to-24-hour interval basis.

While high-contour scientists such as Dr. Anthony Fauci have said that 12 to 18 months will be needed to produce vaccines, several pharma giants have said that they remain optimistic in producing vaccines within the side by side eight months.

Alternative drugs like hydroxychloroquine, a malaria treatment, have proven to exist effective in treating some coronavirus patients but for the time beingness a cure-all has yet to exist found.

Every bit the U.South. and Europe encounter progress in containing coronavirus and effective treatments emerge, the stock market is likely to evidence a potent response, mayhap leading to an increased demand for Bitcoin and other cryptocurrencies besides.

By the twelvemonth'due south end, Hayes still estimates that Bitcoin will reach $20,000. This aligns with the tendency of the Bitcoin toll to surge 10 to eleven months later on the block reward halving takes place.