Yigit Taha OZTURK 
More than $612 billion in new liquidity expected in the first quarter of 2025 could ease investor concerns over delays in US crypto regulations.
Bitcoin’s Price Movement
Bitcoin (BTC) has dropped nearly 6% in the last 24 hours, falling to $95,520 and slipping below the critical $100,000 psychological resistance level. This resistance has been a hurdle for BTC since Dec. 19.
In a blog post, BitMEX co-founder Arthur Hayes suggested that the anticipated $612 billion liquidity injection into the US Treasury in Q1 2025 could offset the disappointment caused by delayed regulations:
“A letdown by the Trump administration on its proposed pro-crypto and pro-business laws might occur. However, this extremely positive dollar liquidity boost could support the crypto market.”
Bitcoin Could Peak in March!
According to Hayes, money printing is expected to accelerate after Trump’s inauguration, leading to a Bitcoin peak in March. However, he anticipates a correction following this peak:
“The market will soon realize that Trump has at best one year to implement any crypto policies. This realization could trigger a significant sell-off in crypto and other Trump 2.0 trades.”
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Despite regulatory uncertainty, analysts remain optimistic about Bitcoin’s trajectory. Some predict that an expected $20 trillion increase in global money supply by late 2025 could attract $2 trillion of investment into BTC, pushing its price above $150,000.
Can Bitcoin Retest $100,000 Before Trump’s Inauguration?
Bitcoin’s recent correction has been attributed to reduced institutional investor activity during the holiday season.
However, as the new year begins, institutional investors are expected to redeploy capital. This “institutional liquidity boost” could help Bitcoin retest $100,000 before Trump’s Jan. 20 inauguration.
Binance Research noted:
“It is possible for BTC to recapture $100K ahead of Trump’s inauguration, but continued supportive conditions will be necessary to maintain these levels.”
As Trump’s inauguration approaches, institutional investors remain optimistic. On Jan. 7, New York Stock Exchange-listed KULR Technology Group predicted Bitcoin would exceed $200,000 in 2025. The firm revealed it had taken advantage of the dip, purchasing Bitcoin at $97,000.
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