Bitcoin’s latest price correction has drives renewed concerns among traders as the leading cryptocurrency fell to just above $80,000 over the weekend. Analysts are now questioning whether the asset is on track to retest lower levels, with some warning of a potential drop to $75,000 if selling pressure continues.

Bitcoin’s “Ugly Start” to the Week

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, described the price action as an “ugly start” to the week. Hayes warned that Bitcoin could soon test the $78,000 mark, and if it fails to hold that level, a drop to $75,000 could be imminent.

Adding to the uncertainty, Hayes noted that a large amount of Bitcoin options open interest is concentrated in the $70,000–$75,000 range. If Bitcoin enters this zone, the market could experience heightened volatility as traders scramble to adjust their positions.

Panic Selling Intensifies as New Investors Exit

According to market research firm 10x Research, Bitcoin’s correction appears to be a “textbook” pullback. The firm noted that nearly 70% of recent selling activity came from investors who bought Bitcoin within the last three months, suggesting that newer market participants are panic-selling in response to the downturn.

Despite the short-term uncertainty, seasoned investors remain cautiously optimistic, with some viewing this dip as a potential buying opportunity before Bitcoin resumes its long-term upward trajectory.

Derivatives Market Signals Rising Uncertainty

Data from derivatives platform Deribit shows that Bitcoin options contracts at key strike prices have significant open interest:

• $70,000 strike price: $696 million in open interest
• $75,000 strike price: $659 million in open interest
• $80,000 strike price: $680 million in open interest

This data indicates that traders are actively betting on price movements within this range, which could lead to increased volatility in the coming days.

Bitcoin’s Volatility and Market Sentiment

Bitcoin has remained highly volatile over the past two weeks, fluctuating between $80,000 and $95,000 amid shifting global economic narratives. Reports of U.S. trade tariffs and evolving regulatory stances from the White House have added to market uncertainty.

As a result, the Bitcoin Fear & Greed Index has plunged back into “extreme fear,” reaching a reading of 20 on March 10. This suggests that investor sentiment has turned notably bearish, potentially fueling further price swings.

Arthur Hayes’ Prediction: A Short-Term Pullback Before a Massive Rally?

In late January, Hayes predicted that Bitcoin would drop to $75,000 before surging to $250,000 later in the cycle. While acknowledging that his forecast could be incorrect, he remains confident that Bitcoin’s long-term trend remains bullish.

A month later, Hayes warned that Bitcoin could see a more substantial decline to $70,000 due to hedge funds unwinding their positions in Bitcoin ETFs. This prediction seemed to materialize when Bitcoin fell to $78,000 on February 28—the lowest level recorded in 2025 so far.

Macroeconomic Events Could Shape Bitcoin’s Next Move

The coming week could prove crucial for Bitcoin’s price action as the U.S. releases two key inflation reports. If inflation data suggests continued price increases, the Federal Reserve may adopt a more hawkish stance on monetary policy, potentially impacting Bitcoin and broader financial markets.

Meanwhile, global trade tensions continue to escalate. Canada recently declare retaliatory tariffs following U.S. trade policy changes. Newly elected Liberal Party president Mark Carney took a strong stance against former U.S. President Donald Trump’s tariffs, stating that Canada will defend its economic interests.

What’s Next for Bitcoin?

Bitcoin’s immediate future hinges on whether it can hold above $78,000. If this level breaks, a drop to $75,000 or even lower could be on the horizon. However, if buyers step in and reclaim higher ground, Bitcoin could quickly rebound toward $85,000 and beyond.

For now, traders and investors should brace for continued volatility as macroeconomic and geopolitical factors shape market sentiment. Whether this correction is merely a bump in the road or a sign of deeper trouble remains to be seen.