Bitcoin and stock markets plummet, Arthur Hayes urges investors to be patient: Why is Crypto in the Red?

Jakarta, Pintu News – Bitcoin (BTC) experienced a sharp drop below Rp1.25 billion for the first time since November 2023. The cryptocurrency briefly touched the Rp1.25 billion level before climbing back to around Rp1.29 billion, according to data from CoinGecko.

This marks a 30% correction from the previous record high of Rp1.79 billion. However, the decline was not only in crypto, but also in the global stock market. According to Arthur Hayes, founder of BitMEX, investors should be patient and wait for recovery momentum before getting back into the market.

Stock Market Falls

In addition to Bitcoin, major stock indices are also under pressure. The Nasdaq 100 fell 1,050 points in one day, which is equivalent to 5.8%. After-hours trading showed a further decline, with an additional 300 points lost. If the markets had remained open, this could have triggered an emergency trading halt due to a major panic.

The S&P 500 index also experienced a negative trend, falling for three consecutive weeks. The Dow Jones lost nearly 900 points and fell below its 200-day moving average for the first time since November 2023. Some analysts think the market is starting to experience a state of capitulation, where investors sell their assets massively out of fear of further losses.

Also Read: MicroStrategy Stock Downside Risk Amid Crypto Market Volatility

Crypto and Tech Stocks Take a Hit

Crypto is not alone in facing market pressure. Crypto-related stocks experienced sharp declines. Coinbase plummeted 17.6%, Robinhood fell 19.8%, and MicroStrategy, now called Strategy, experienced a 16% correction.

The Bitcoin ETF market is also facing major pressure. According to CoinShares, there was an outflow of IDR14.13 trillion over the past week, making it the fourth consecutive week with withdrawals from Bitcoin ETFs. In total, in the past four weeks, investors withdrew IDR77.42 trillion from the Bitcoin ETF market, reflecting the growing bearish sentiment.

Arthur Hayes’ Predictions and Global Economic Sentiment

Arthur Hayes predicts that Bitcoin is likely to bottom out at Rp1.14 billion, which is a 36% correction from its peak. He calls this decline normal in a bull market.

However, Hayes emphasized that the crypto recovery will not happen on its own. According to him, it will take certain conditions such as further stock market crashes, bankruptcies of major financial institutions, and looser central bank policies to trigger a new rally. When these conditions are met, only then can investors re-enter the crypto market with optimism.

Peter Schiff criticizes Bitcoin, investors await economic data

Economist Peter Schiff, a known Bitcoin critic, has voiced his opinion again after the latest drop. He questioned how the US government could consider Bitcoin as a reserve asset when its value could drop so drastically in a short period of time. He even warned that if Bitcoin drops by 50%, the argument for it being a reliable asset will be even harder to defend.

Meanwhile, investors are currently awaiting the release of key economic data that could influence the Federal Reserve’s monetary policy. Reports such as the Job Openings and Labor Turnover Survey (JOLTS), Consumer Price Index (CPI), and Producer Price Index (PPI) will provide more insight into inflation and possible interest rate cuts.

Conclusion

Both crypto and stock markets are facing immense pressure amid global economic uncertainty. Bitcoin and stock market declines indicate high volatility which makes investors tend to be cautious. Arthur Hayes suggests staying patient, while many are waiting for central bank policies that could influence the direction of future market movements.

Also Read: Shiba Inu (SHIB) and the Challenges to a Price Rally in the Cryptocurrency Market (11/3/25)

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cryptopolitan. Arthur Hayes: Bitcoin and Stock Investors Should Be Patient. Accessed March 12, 2025.
• Featured Image: The image created by AI