Arthur Hayes: Bitcoin may first drop to $80,000–$85,000, and then surge to the $200,000–$250,000 range by the end of the year

BitMEX co-founder Arthur Hayes stated in his latest blog post "Snow Forecast" that the drop of Bitcoin from $125,000 to the $90,000 range, while U.S. stocks remain at historical highs, indicates that "a credit event is brewing."

Hayes pointed out that his U.S. dollar liquidity index has significantly weakened since July, and if the market deteriorates further, the Federal Reserve, the Treasury, or other institutions will be forced to accelerate "money printing" to stabilize the situation. During this period, Bitcoin may fall back to the $80,000 - $85,000 range. He believes that once U.S. liquidity expands again and stimulus policies are intensified, Bitcoin will quickly reverse, with the potential to surge to the $200,000 - $250,000 range by the end of the year.