Hayes suggests the correction could be even more significant if long-awaited US-listed spot Bitcoin ETFs have already begun trading.
He outlines a scenario in which the expectation of a significant influx of fiat money into these ETFs could push Bitcoin's price above $60,000 and closer to 2021's all-time high of $70,000.
In his analysis, Hayes warns of a potential correction of 30-40% caused by a “drain of dollar liquidity.”
This event represents a sudden and significant reduction in liquidity, particularly in US dollars, and could have a cascading effect on asset prices.
However, the prospect of large-scale institutional investment through spot Bitcoin ETFs has been the focus of attention in the cryptocurrency market.
Institutional participation is often seen as a key driver of price movements, and the launch of a Bitcoin ETF is expected to bring significant capital into the crypto space.
