Hayes: Fed’s Shift in Monetary Policy Could Trigger Bitcoin Price Surge!

BitMEX co-founder Arthur Hayes predicts that Bitcoin will experience a significant surge, reaching $110,000 before dipping back to $76,500. This forecast is based on the expectation that the central bank’s shift from tightening to easing, injecting liquidity into the market, will boost digital asset prices.

Hayes stated on X, “I bet BTC hits $110k before it retests $76.5k. Why? The Fed is moving from QT to QE for treasuries.”

He dismisses concerns about tariffs negatively affecting Bitcoin’s price, arguing that inflation is “transitory.”

Markus Thielen: Bitcoin Ready to Recover After Recent Dip

Markus Thielen, founder of 10X Research, forecasts Bitcoin’s potential to recover. In a report dated March 23, Thielen noted that Bitcoin may have reached its lowest point during the recent downturn and is poised for a rebound.

According to Thielen, the Fed’s more flexible stance on inflation and Trump’s more lenient approach to tariffs could ease market concerns and boost investor confidence.

“The Fed signaled it might overlook short-term inflationary pressures, laying the groundwork for potential future easing,” he said.

Thielen also mentioned that the relaxed political climate and favorable economic forecasts have turned Bitcoin’s indicators bullish.

The analyst pointed to supporting factors such as Bitcoin holders’ behavior and ETF performance. Thielen believes Bitcoin won’t enter a deep bear market because large Bitcoin holders are likely long-term investors.

Bitcoin ETF Inflows Signal Positive Outlook: Bitcoin Climbs to $87,000

On the other hand, new inflows into US-based spot Bitcoin ETFs are seen as a positive signal, indicating reduced selling pressure from arbitrage-focused investors.

According to Farside Investors data, US-listed spot Bitcoin ETFs collectively saw net inflows of around $744 million last week. BlackRock alone attracted approximately $537 million in new investments.

Despite being bullish, Thielen acknowledges that there is no “clear catalyst” for an immediate parabolic rally.

As of writing, Bitcoin was trading at approximately $87,000, up 3.5% in the last 24 hours. The total crypto market cap rose slightly to $2.9 trillion.

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In a post on platform X (formerly Twitter) on September 8, Hayes revealed that he has shifted away from his earlier prediction of Bitcoin falling below $50,000. He now expects Bitcoin and the broader crypto market to recover as early as next week. This reversal comes as large investors, or “whales,” have been buying Bitcoin during its recent dip, according to a CoinGape report.

Hayes’ bullish sentiment aligns with recent comments from veteran trader Peter Brandt. Brandt, who had previously forecasted a potential $46,000 low for Bitcoin, now sees a more optimistic outlook. In response to Bitcoin critic Peter Schiff, Brandt pointed out that Bitcoin is forming a massive inverted head-and-shoulders (H&S) pattern, a technical signal often considered extremely bullish—particularly in relation to gold.

Arthur Hayes Expect Bitcoin to Rise

Crypto market sentiment has shown slight improvement in recent days, moving from “extreme fear” to “fear,” as reflected by the Crypto Fear & Greed Index, which climbed from 23 to 29. This change suggests that while caution remains, optimism about a market recovery is growing.

Hayes’ optimism may also be driven by comments from U.S. Treasury Secretary Janet Yellen, whose oversight of the market has fueled expectations of increased dollar liquidity, which could benefit Bitcoin and other digital assets.

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With sentiment improving and key figures in the crypto space predicting a turnaround, the next week could prove pivotal for Bitcoin’s price trajectory.

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Criticizing the current monetary policy of the US, Arthur Hayes stated in a new article that the FED’s lowering of interest rates could be a trigger for Bitcoin to rise. According to Hayes, the US economy does not actually need to lower interest rates, but such a rate cut will not be a long-term solution and will only be a short-term stimulus.

Arthur Hayes Makes Statements About Bitcoin Rise

Arthur Hayes stated in his article that many people consider the FED’s interest rate cuts as a sign of a possible recession. Hayes thinks that if these recession fears come true, the FED could print a significant amount of money, which could increase inflation. This scenario could lead to an increase in the value of Bitcoin due to its limited supply.

Hayes also stated that global central banks, including the FED, have been cutting interest rates without reaching their inflation targets. He said that this situation could support the appreciation of Bitcoin and other cryptocurrencies.

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Hayes summarized his views as follows:

“I am a crypto guy, I don’t do shows. So I don’t know if stocks will rise or not. Some fear that there will be a recession in the US and therefore in global markets after the FED cuts interest rates. This may be true. Imagine what they will do if the FED cuts interest rates when inflation is above its target and growth is strong and there is a real recession in the US. They will accelerate money printing and significantly increase the money supply. This will lead to higher inflation. However, for assets with limited supply like Bitcoin, it will provide a lightning-fast rise.”

Arthur Hayes’ statements have sparked a wide debate about the possible impact on Bitcoin and the general cryptocurrency markets, and investors continue to closely monitor the FED’s future interest rate policies.

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The post Arthur Hayes Says the Bitcoin Rise Depends on the Fed! appeared first on Coin Engineer.

Hayes indicated a net liquidity increase of $106 billion since November 21. This increase stemmed from the increases in RRP and TGA accounts. The RRP is a tool that banks use to borrow funds from the Fed. The TGA is an account where the US Treasury Department holds money temporarily. Hayes said that this increase in liquidity would cause investors to invest more money in Bitcoin, leading to a rise in Bitcoin’s price.

Getting my feet did and observing how Bad Gurl Yellen is busy pumping financial assets. Don’t get distracted, $ liquidity is increasing and $BTC will go up as well. This is the chart of net RRP and TGA balance changes. pic.twitter.com/l2US0FzlAX

— Arthur Hayes (@CryptoHayes) November 25, 2023

Crypto Analyst Dharmafi also shared data supporting Arthur Hayes’ views. According to Dharmafi, the RRP balance has increased by $65 billion and the TGA balance by $35 billion since November 21, amounting to a total net liquidity increase of $106 billion. US Treasury Secretary Janet Yellen continues to be skeptical about Bitcoin.

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Yellen, at a recent meeting of G20 finance ministers and central bank governors, stated that cryptocurrency exchanges need to follow the laws. Yellen emphasized the importance of compliance in the digital currency industry and the need to adhere to regulations to operate within the US financial system.

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