BitMEX founder Arthur Hayes suggested that Bitcoin’s price action is entirely driven by market expectations regarding future fiat money supply.
Arthur Hayes Predicts Bitcoin Could Reach $250K by Year-End Amid Fed Policy Shift
In his latest article, Hayes argues that Bitcoin (BTC) could climb toward a $250,000 target by the end of 2025 if the U.S. Federal Reserve makes a major policy shift from quantitative tightening (QT) to quantitative easing (QE) for Treasury bonds.
According to Hayes, Bitcoin responds sharply to changes in monetary policy, acting as a barometer for global liquidity conditions.
Hayes points out that previous periods of aggressive money printing, such as during the COVID-19 stimulus period, have led to significant rallies in Bitcoin and other risk assets.
If the Fed reverses its QT stance and continues to buy Treasuries through QE, it could inject a large amount of liquidity into the financial system.
Hayes argues that this will drive investors into hard assets like Bitcoin, strengthening Bitcoin’s role as a hedge against fiat devaluation.
Can Bitcoin Reach $250K?
Hayes’ $250,000 Bitcoin price target is based on the assumption that the Fed will ease in the face of economic pressures. While such a target is ambitious, increasing speculation that monetary policy will shift could further fuel bullish sentiment in the crypto market.
With Bitcoin set to surpass its all-time high in 2025, macro trends and central bank policies could play a decisive role in determining whether Hayes can achieve his six-figure prediction.
*This is not investment advice.
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