In recent weeks, Bitcoin has been caught in a holding pattern, struggling to regain its momentum after a wave of “panic selling” raised concerns over a significant price crash.
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The price of Bitcoin has significantly decreased from its all-time high of nearly $110,000, now hovering around $80,000, even as reports suggest that Russia is discreetly embracing Bitcoin and cryptocurrency.
Amid speculation that Donald Trump’s administration may be preparing to acquire a substantial amount of Bitcoin, prominent crypto trader Arthur Hayes anticipates that the Federal Reserve will intervene to stabilize the markets, which could potentially ignite a Bitcoin price surge.
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Federal Reserve chair Jerome Powell could intervene to support markets, including boosting the Bitcoin price … [+]
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“In times of financial distress, they invariably resort to printing money regardless of the political climate,” Hayes, co-founder of the crypto derivatives platform BitMex, remarked during a comprehensive interview with Bitcoin News.
Recently, both Bitcoin and the broader cryptocurrency market have trended downward alongside stock markets as traders react to Donald Trump’s fluctuating international trade tariffs and growing recession risks.
“Once the floodgates open, that’s when the action begins,” Hayes stated, referring to the anticipated resurgence of liquidity in the market, predicting “they’re going to inflate and print more money than has ever been produced before.”
Historically, the last Bitcoin price surge, which saw Bitcoin reach about $70,000 in late 2021, was fueled by the extensive government stimulus and money-printing during the Covid pandemic.
“We are currently witnessing a dip in liquidity and fiat money generation,” Hayes observed.
He has forecast that Bitcoin could soar to $250,000 by year-end, as the Fed may be compelled to adopt a dovish stance to buoy the economy and asset values.
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Bitcoin’s price has fallen back from recent highs of around $110,000 per Bitcoin, affecting the entire crypto market … [+]
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The Federal Reserve is set to commence a two-day policy meeting today, with its latest interest rate decision anticipated tomorrow. Analysts expect rates to remain stable despite President Trump’s push for reductions.
Market participants are factoring in two or three rate cuts by the year’s end, though this could shift based on Fed chair Jerome Powell’s pivotal post-decision conference.
“This week, all eyes are on the Federal Reserve’s policy development,” noted analysts at BlackRock.
