Arthur Hayes Says Fed Will Pump Crypto With $9Tn Package: Trump Crypto Announcement Is Just Arriving
Bitcoin price could peak at $250,000 this year, according to BitMEX’s Arthur Hayes. He ties his prediction to macroeconomic trends, particularly the Federal Reserve and Trump crypto announcement, pulling back on quantitative tightening.
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lingering near $80,000 after a rough Q1, Hayes’ claim has stirred fresh debate about cryptocurrency’s 2025 course. According to Hayes, here’s where Bitcoin is heading next.
Arthur Hayes: Is $77,000 Bitcoin’s Bottom?
Bitcoin’s recent dip to $77,000 in early March marked its lowest point since November, raising questions about whether the correction has run its course. Arthur Hayes believes we’ve seen the worst— he also called it in 2024 — attributing Bitcoin’s rebound potential to the Fed scaling back its restrictive QT measures.
“Was BTC $77k the bottom, prob,” Hayes proclaimed in a recent post, emphasizing that QT is “basically over” as the Fed announced plans to significantly slow its securities sell-off starting April.
Reversing the order of my tryptic essay series.
The Ugly will be published tomorrow morning. I am calling for a $70k to $75k correction in $BTC, a mini financial crisis, and a resumption of money printing that will send us to $250k by the end of the year. pic.twitter.com/wohvbKkXOf
— Arthur Hayes (@CryptoHayes) January 27, 2025
QT, which involves the central bank reducing the money supply by selling assets like Treasury securities, has long been a source of market pressure, particularly for risk-on assets like Bitcoin.
Now that the Fed is dialing this back, Hayes believes it could ease liquidity constraints and stabilize markets.
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The Fed’s Role in Crypto Recovery and Trump Crypto Announcement
The Federal Reserve’s pivot is key to understanding Hayes’s bullish forecast. By reducing the monthly Treasury cap from $25 billion to $5 billion, the Fed is effectively signaling a shift toward more accommodative policy measures. Hayes predicts that this easing could pave the way for even more aggressive monetary stimulus in the future, particularly quantitative easing (QE).
Echoing Hayes’ sentiment on X, Jamie Coutts, chief crypto analyst at Real Vision Finance, added, “QT is effectively dead.” Both analysts agree that as the pressure on Treasury markets subsides, liquidity may return, providing much-needed support for Bitcoin and other risk assets.
Meanwhile, market optimism is on the rise. The Crypto Fear & Greed Index is edging into “Neutral” territory after weeks of lingering in the “Fear” zone, an indication of improving sentiment among investors.
(source)
Bitcoin Price Prediction 2025 and Trump Crypto Announcement
Arthur Hayes likens this market to Bitcoin’s 2021 climb to $70,000, fueled by pandemic money printing. For Hayes, another round of QE could mean a tidal wave of liquidity driving Bitcoin to uncharted territory.
“When the floodgates open, it’s go time,” he said, framing Bitcoin as a prime hard asset in volatile times.
JAYPOW delivered, QT basically over Apr 1. The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE.
Was $BTC $77k the bottom, prob. But stonks prob have more pain left to fully convert Jay to team Trump so stay nimble and cashed up.
— Arthur Hayes (@CryptoHayes) March 20, 2025
However, not everyone agrees. With Bitcoin off 22% from its January peak of $109,000, critics argue the recent bounceback is just a mid-bull correction. Concerns over recession risks and geopolitical tensions are causing “store some dry powder”.
Still, Hayes is doubling down, pointing to Bitcoin’s past resilience and predictable four-year cycles.
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Key Takeaways
- Bitcoin could peak at $250,000 this year, according to BitMEX’s Arthur Hayes.
- The pivot by the Federal Reserve is key to understanding Hayes’s bullish forecast.
- Concerns over recession risks and geopolitical tensions are causing some stores to hold some dry powder.
The post Arthur Hayes Says Fed Will Pump Crypto With $9Tn Package: Trump Crypto Announcement Is Just Arriving appeared first on 99Bitcoins.