Arthur Hayes Forecasts Bitcoin Local Bottom Near $40,000: How He’s Hedging and Why He Still Sees $250K

Arthur Hayes, the co-founder of BitMEX and chief investment officer at Maelstrom Fund, has issued a striking near-term bearish forecast for Bitcoin: he expects the cryptocurrency to hit a local bottom near $40,000 within the next six months — a potential 35% decline from its price of roughly $62,000 in late June 2026 .

Hayes has not simply issued the warning; he has actively positioned for it using protective put spreads, an options strategy that caps downside exposure without requiring him to sell his core long holdings . At the same time, he maintains his famously bullish long-term outlook, reiterating a year-end target of $200,000 to $250,000 .

Here is a breakdown of the prediction, the hedge, the catalysts Hayes cites, and how the bearish short-term view fits into his broader conviction.

The $40,000 Bitcoin Bottom Call

Hayes made the forecast during a June 12, 2026 interview with content creator EllioTrades . At the time, Bitcoin was trading around $62,278 . Hayes stated that Bitcoin's floor is "probably around $40,000," expecting the drop to play out over the coming six months . That level represents approximately a 35% drawdown from the price at the time of the interview .

This is not Hayes's first short-term bearish call on Bitcoin. In his track record as a trader and commentator, he has frequently called for sharp corrections within broader bull cycles.

Hedging Strategy: Put Spreads, Not a Liquidation

Hayes has emphasized that his bearish near-term outlook does not reflect a change in his fundamental bullish conviction . Instead of selling his core Bitcoin position, he has employed a put spread — buying and selling put options at different strike prices to define a maximum downside .

This approach allows him to limit losses in the event Bitcoin falls to the $40,000 area without exiting his long-term position . It is a tactical hedge designed to weather a rough patch in the market, not a strategic shift.

What Hayes Cites as Drivers of Downside

Hayes attributes the potential decline to two primary macro factors:

1. Speculative Capital Flowing into AI Investments
Hayes argues that speculative capital is currently rotating into artificial intelligence-related investments, which is "constraining cryptocurrency growth in the near term" . In other words, the AI "bubble" is drawing liquidity away from crypto markets, creating headwinds for Bitcoin.

2. Tightening Dollar Liquidity
Hayes has previously warned that the crypto rally has lost key support as dollar liquidity tightens across the financial system . A hawkish stance from the Federal Reserve and rising probabilities of further rate hikes are weighing on Bitcoin momentum .

Hayes's framework holds that Bitcoin is highly sensitive to global liquidity conditions. When dollar liquidity contracts, risk assets — including crypto — tend to struggle.

Additional factor: Institutional positioning
While Hayes acknowledged that MicroStrategy’s acquisition of 520 BTC briefly pushed prices above $65,000, he noted that broader headwinds from Fed tightening have offset that support .

The Long-Term Bullish Contrast: $200,000 to $250,000 by Year-End

Despite the near-term bearish call, Hayes remains unequivocally bullish over a longer time horizon. He has reiterated a year-end target of $200,000 to $250,000 for Bitcoin .

His reasoning is simple and consistent with his long-held view: fiat currency debasement is the primary driver of Bitcoin's price. Central bank money creation, government spending, and loose fiscal policy flood the system with dollars, and Bitcoin — as a finite, non-sovereign asset — absorbs that liquidity over time .

From Hayes's perspective, near-term corrections like the one he is forecasting are buying opportunities within a broader bull cycle. The $40,000 dip would be a temporary setback, not the start of a long-term downtrend.

Conclusion: A Contrarian Bet That Fits a Consistent Thesis

Arthur Hayes's $40,000 Bitcoin bottom call is not a reversal of his long-standing bullish thesis — it is a tactical acknowledgment that short-term macro headwinds (AI capital rotation and Fed tightening) can create a painful drawdown within a longer-term uptrend. His use of put spreads reflects a disciplined approach to risk management: hedged against the correction, but fully exposed to the rally he expects afterward.