The post Fed’s Money Printing to Fuel Bitcoin Surge in Early 2025 — Arthur Hayes appeared on BitcoinEthereumNews.com.

The cryptocurrency market is brimming with anticipation as the U.S. Federal Reserve’s monetary policy and incoming President Donald Trump’s regulatory approach converge to shape Bitcoin’s trajectory in early 2025. A significant liquidity injection, estimated at $612 billion, is expected to enter the U.S. economy during the first quarter, fueling optimism for a potential Bitcoin rally despite lingering uncertainties. Arthur Hayes, co-founder of BitMEX and a vocal crypto commentator, predicts that this liquidity boost could offset regulatory delays. “An extremely positive dollar liquidity environment can cover a letdown by team Trump on his proposed pro-crypto and pro-business legislation,” Hayes wrote in a recent blog post, underscoring the impact of fiscal policies on Bitcoin’s market dynamics. A Rollercoaster Start to the Year Bitcoin recently experienced a sharp decline, dropping 6% to trade below the $100,000 mark—a psychological resistance level—on January 8. This dip followed a holiday-induced lull in institutional trading activity. Analysts expect renewed institutional liquidity at the start of the year to bolster Bitcoin’s performance, potentially allowing it to reclaim and sustain six-figure valuations ahead of Trump’s inauguration on January 20. Bitcoin hit its bottom in Q3 2022 as the Fed’s Reverse Repo Facility (RRP) peaked. Source: Arthur Hayes/Substack According to Binance Research, institutional investors’ reentry could reignite Bitcoin’s upward momentum. “While BTC can recapture $100K on expectations of positive crypto regulation such as a Bitcoin Strategic Reserve, the market will need to see continued supportive conditions to maintain such levels,” the firm noted. Trump’s administration has promised pro-crypto policies, but analysts warn that delays in implementing a regulatory framework could dampen investor confidence in the short term. Hayes predicts that the market may face a correction by March, driven by these regulatory disappointments. However, he remains optimistic about Bitcoin’s long-term outlook, citing an anticipated $20 trillion increase in global money…

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Filed under: News - @ January 11, 2025 12:15 pm