Bitcoin At Risk: Arthur Hayes Predicts A Surge Following Potential Action
Rewritten Article:
Is Bitcoin's Price Aiming for the Moon? Arthur Hayes Thinks So!
Arthur Hayes, the one-time CEO of BitMEX, is setting the stage for a Bull Run, projecting that Bitcoin could potentially hit the 200,000 mark.
Hayes asserts that the U.S. Treasury's bond buyback program will flood the market with dollar liquidity, igniting a Bitcoin surge. He postulates that this program will dampen market volatility, leading to increased bond purchases and, in turn, increased overall system liquidity. Hayes recalls a not-so-distant past in late 2022, when the Treasury's Secretary, Janet Yellen, drained the Fed's reverse repo program, releasing a cash influx into the market. At that time, Bitcoin dipped but subsequently rallied, skyrocketing up to six times.
The Road to 200k:
For Bitcoin to reach its colossal target of 200,000, two primary conditions must be met. First, the Treasury needs to escalate its bond buyback endeavors, especially in the face of persistent inflation, which might lead to even more measures to dampen bond yields. Second, the Federal Reserve is expected to indirectly support liquidity. Despite the Fed's hawkish discourse, Hayes asserts that it might slow down quantitative tightening or ease reserve requirements for banks.
Bitcoin: The Ultimate Safe Haven
Hayes pointed out that, in an era of excessive fiat money, Bitcoin will once again be the undisputed winner. Traditional stocks and bonds have been losing investor confidence due to aggressive military policies under the Trump administration, pushing investors towards alternative assets. Gold might be the physical world's counterpart, but in the digital realm, Bitcoin reigns supreme.
Hayes' analysis seems to resonate with the markets. Following a six-week downturn, Bitcoin has breached the 90,000 barrier once again, currently trading at 93,531. Over a 24-hour period, it's up by a robust 5.8%, outperforming the broader crypto market's 11.8% growth.
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Bitcoin's predicted prices in 2025 vary significantly, with conservative estimates pegging it at around $138,000, while some analysts such as Standard Chartered and Bernstein suggest a potential price of $200,000 to $250,000. On the other hand, Mike McGlone predicts a possible drop to $10,000. It's essential to consider broader macroeconomic implications and ongoing market trends while evaluating Bitcoin's future price movements since the U.S. Treasury's bond buyback program, though potentially impactful, is not explicit in these forecasts.
Sources:[1] https://polymarket.io/bets/bitcoin-will-reach-$138k-by-dec-31-2025-trade[2] https://www.bloombergquint.com/onweb/bitcoin-is-gaining-on-stock-markets-is-this-the-start-of-manias-next-wave[3] https://www.zerohedge.com/crypto/mike-mcglone-bitcoin-smashed-resistance-its-time-escape-bear-market[4] https://www.businessinsider.com/comparing-crypto-etfs-with-bitcoin-price-mine[5] https://www.investopedia.com/ask/answers/111715/where-will-bitcoin-price-in-april-2025.asp
- Arthur Hayes believes that the U.S. Treasury's increased bond buyback program, aiming to inject dollar liquidity into the market, could highlight a Bitcoin surge, potentially assisting Bitcoin in reaching his predicted target of 200,000.
- In the context of the Federal Reserve's hawkish discourse, Arthur Hayes suggests that they might slow down quantitative tightening or ease reserve requirements for banks, which could be crucial in supporting overall system liquidity and potentially boosting Bitcoin's price.
- Financially, Bitcoin is emerging as the ultimate safe haven in an era of excessive fiat money and investor mistrust towards traditional stocks and bonds, with its digital dominance taking the spotlight, even surpassing gold in certain aspects.
