Arthur Hayes Forecasts Bitcoin Surge to $110K Amid Fed Policy Shift
Arthur Hayes predicts Bitcoin could rise to $110K before retracing to $76.5K, driven by a shift in the Fed’s policy to quantitative easing. Markus Thielen supports this outlook, noting favorable economic indicators and reduced inflation concerns. Recent inflows into Bitcoin ETFs could further bolster this trend, although a clear catalyst for a parabolic rally is still absent.
Arthur Hayes, the co-founder of BitMEX, has predicted a significant rise in Bitcoin’s price, forecasting it will reach $110,000 before retracing to $76,500. This optimism is largely attributed to a shift in the Federal Reserve’s monetary policy from quantitative tightening (QT) to quantitative easing (QE), which is expected to enhance market liquidity and consequently boost Bitcoin’s value. Hayes expresses his confidence in this prediction through his recent statement on social media, where he cites the Fed’s policy change as pivotal.
In addition to Hayes, Markus Thielen, founder of 10X Research, also suggests that Bitcoin may have reached its lowest point in the current downturn and is set for recovery. According to Thielen, the Federal Reserve’s lenient stance on inflation, along with a more adaptable approach to tariffs, could mitigate market anxiety and spur investor confidence in Bitcoin. He notes that the Fed has signaled a willingness to overlook short-term inflationary pressures, thereby enabling a potential easing of monetary policy in the future.
Thielen further highlights that the current political climate and economic forecasts appear favorable, contributing to a bullish outlook for Bitcoin. Key indicators, such as the behavior of Bitcoin holders and the performance of exchange-traded funds (ETFs), support this positive sentiment. He emphasizes that large Bitcoin holders are likely long-term investors, which could prevent a severe bear market.
Moreover, Thielen points out that there is a resurgence of inflows into US-based spot Bitcoin ETFs, signaling reduced selling pressure from arbitrage-heavy investors. Recent data reveals that US-listed Bitcoin ETFs collectively enjoyed approximately $744 million in net inflows last week, with BlackRock alone capturing about $537 million. However, Thielen also notes that there remains a lack of a specific catalyst for an immediate rally in Bitcoin’s price.
Currently, Bitcoin is trading at around $87,000, reflecting a 3.5% increase over the past 24 hours, with the total cryptocurrency market capitalization rising slightly to $2.9 trillion, according to CoinGecko.
In conclusion, optimism regarding Bitcoin’s future performance is fueled by anticipated changes in monetary policy from the Federal Reserve, with predictions suggesting it may reach $110,000 before stabilizing at $76,500. Various analysts, including Arthur Hayes and Markus Thielen, note that current economic conditions and favorable investor behavior are contributing to a potentially bullish trend, despite some uncertainties in the market.
Original Source: cryptobriefing.com
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