Bitcoin, Crypto Market To Peak By March Followed By Crash, Predicts Arthur Hayes
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BitMEX co-founder Arthur Hayes predicts Bitcoin and the crypto market will peak before mid-2025, followed by a sharp correction. Hayes based his prediction on the US dollar liquidity environment that unfolds in Q1 2025 as Donald Trump takes charge at the White House on January 20. Bitcoin and Crypto Market In Early 2025 BitMEX co-founder Arthur Hayes expects a crypto market rally will last until Q1 2025, as per a new blog on January 7. He cites a pro-business environment and pro-crypto policies as Donald Trump takes charge, which will continue to drive Bitcoin and other crypto assets higher. However, he also warned about a potential crash ahead for the market once it hits its peak in around March. “Sasa” is an essay where I explain y I think #crypto tops out in mid-Mar and then severely corrects. Until then is time to dance. https://t.co/Apt124sOjp pic.twitter.com/LKQ24GMtpq — Arthur Hayes (@CryptoHayes) January 6, 2025 Notably, he stresses that the US Dollar liquidity will continue to drive optimism in crypto. Hayes believes that recent policy shifts, particularly from the U.S. Federal Reserve and the Treasury Department, will influence Bitcoin price trajectory. Similar to the peak of the Fed’s Reverse Repo Facility (RRP) in Q3 2022, global liquidity saw a surge. Also, BTC found its bottom and reversed its trajectory since then. Hayes predicts that the Fed will continue its quantitative tightening (QT) at a pace of $60 billion per month until mid-2025. This will reduce liquidity in the financial system. This, along with the recent decision to adjust RRP rates, will likely cause liquidity levels to fall sharply in the first quarter of 2025. Source: Arthur Hayes However, it won’t be a matter of major concern says Hayes as he believes that other sources of liquidity will offset this concern. He added…
Filed under: News - @ January 7, 2025 6:28 am