Why Arthur Hayes Says the Federal Reserve Will Drive Bitcoin Price to $250,000
- Bitcoin has been falling since Donald Trump took office,
- But analysts say this may be about to change.
Happy weekend! This is Eric.
Is Bitcoin about to rise?
Arthur Hayes, chief investment officer of Maelstrom, believes so, estimating that Bitcoin's price will rise to $250,000 by the end of the year.
He is more confident in this prediction after Federal Reserve Chairman Jerome Powell hinted that the central bank would allow more liquidity into the US economy.
"Stay flexible, be ready with funds," Hayes wrote on Twitter.
Nevertheless, his bullish attitude comes at a challenging time for the crypto industry.
Donald Trump's erratic tariff policies continue to shake the market - the total crypto market value has dropped 21% since Trump took office. During this period, the S&P 500 and Nasdaq 100 indexes have fallen by about 6% and 9% respectively.
Even Ripple's victory in the lawsuit against the SEC and the president's speech at the digital assets summit failed to break the market's deadlock.
However, Hayes argues that Trump's policies are designed to stoke fears of economic recession and force the Federal Reserve to devalue the dollar, thereby releasing a wave of liquidity into the market. Even a top economist suggested that Bitcoin might play a role in overthrowing the dollar.
"They will reflate, print more money than anyone has ever printed before," Hayes said in early March.
This is bullish for Bitcoin - more money in the market means more funds can be injected into risky assets like cryptocurrencies and tech stocks.
But not everyone is convinced.
"Every on-chain indicator shows bear market signals," said Ki Young Ju, CEO of CryptoQuant, a crypto analytics company.
Earlier this week, he predicted a bear market or price consolidation over the next 6 to 12 months.
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