Bitcoin Price Prediction: Arthur Hayes Forecasts $110,000 Before Correction
BitMEX co-founder Arthur Hayes recently made a bold prediction about the price of Bitcoin (BTC), suggesting that it is more likely to reach $110,000 before experiencing a significant correction. This marks a shift from his previous forecast, where he anticipated a drop to $70,000 before any major rally.
Monetary Policy Influence
Hayes emphasized the impact of the Federal Reserve’s transition from quantitative tightening (QT) to quantitative easing (QE) on Bitcoin’s potential price movement. He believes that this shift in US monetary policy could create the necessary liquidity conditions for Bitcoin to surpass its previous all-time highs.
- Hayes dismisses concerns about inflation and rising tariffs, arguing that inflation is transitory and that monetary policy will drive Bitcoin’s trajectory.
- He pointed out the Fed’s pivot towards QE for treasuries, suggesting that this move could mirror previous interventions in the market.
If Bitcoin manages to reclaim its peak of $110,000, Hayes sees the possibility of further upside to $250,000. However, he also warns of a potential pullback to $70,000 once the rally reaches its peak, cautioning against market overextension fueled by excessive liquidity-driven growth.
Building Momentum in the Market
Hayes’ optimistic outlook aligns with other bullish market calls, such as 10X Research, which recently stated that Bitcoin may have already bottomed out. The firm initially expected a deeper correction after Bitcoin’s drop below $95,000 but revised its stance based on macroeconomic and geopolitical developments.
- Signs of bottom formation have emerged, supported by shifts in trade policy rhetoric and easing inflationary pressures.
- 10X Research adjusted its stance from cautious to moderately bullish following the recent CPI release and the Fed’s hints at future policy easing.
Overall, the firm believes that Bitcoin could be in the early stages of forming a durable bottom, paving the way for a potential recovery in the near future.
Bitcoin Market Data
As of the latest data, Bitcoin is trading around $88,460, showing a 4% increase over the past 24 hours. The cryptocurrency holds a market capitalization of $1.75 trillion with a trading volume of $30.75 billion.
Crypto Market Summary
At present, the total crypto market is valued at $2.89 trillion with a 24-hour volume of $84.99 billion. Bitcoin dominance stands at 60.77%.
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