Essential Insights
- Arthur Hayes predicts that Bitcoin may soar to $110,000 prior to retreating to $76,500.
- This anticipated increase is attributed to a shift in the Federal Reserve’s policy from quantitative tightening (QT) to quantitative easing (QE).
Share this article
The Federal Reserve’s change in monetary policy could trigger a Bitcoin price surge.
BitMEX co-founder Arthur Hayes forecasts that Bitcoin could surpass $110,000 before retreating to $76,500 due to the central bank’s transition from tightening monetary policy to easing, which may infuse liquidity into the market and elevate the digital currency’s value.
“I predict $BTC will reach $110k before it tests $76.5k again. Why? The Fed is moving from QT to QE for treasuries,” Hayes shared on X this Sunday.
Hayes dismisses concerns regarding tariffs negatively impacting Bitcoin’s price, believing inflation to be ‘transitory.’
Markus Thielen, founder of 10X Research, also anticipates potential rebounds for Bitcoin. In a report dated March 23, he suggested that Bitcoin’s price may have bottomed out in the recent downturn and is positioned for recovery.
Thielen identifies the Fed’s dovish approach to inflation and Trump’s flexibility on tariffs as two factors that could mitigate market worries and potentially bolster investor confidence.
“The Fed indicated it may overlook short-term inflationary pressures, setting up a possible path for future easing,” he mentioned.
Thielen noted that a more relaxed political environment and optimistic economic forecasts have turned Bitcoin’s indicators bullish.
The analyst also highlighted contributing factors such as the behavior of Bitcoin holders and the performance of ETFs. He believes Bitcoin is unlikely to enter a prolonged bear market, given that large holders are generally long-term investors.
Additionally, the resurgence of inflows into U.S.-based spot Bitcoin ETFs is viewed as a positive indicator, suggesting reduced selling pressure from arbitrage-focused investors.
According to data from Farside Investors, U.S.-listed spot Bitcoin ETFs experienced approximately $744 million in net inflows last week, with BlackRock alone garnering about $537 million in new investments.
While optimistic, Thielen acknowledges the absence of a “clear catalyst” for an immediate exponential surge.
As of the latest data, Bitcoin is trading near $87,000, reflecting a 3.5% increase in the past 24 hours, according to CoinGecko. The overall cryptocurrency market capitalization has seen a slight rise, now totaling $2.9 trillion.
