Key Takeaways
- Arthur Hayes foresees $612B in Fed liquidity boosting Bitcoin.
- Trump's delayed crypto policies may lead to Q1 2025 volatility.
- Analysts predict a Bitcoin cycle top above $150K by late 2025.
Bitcoin’s trajectory could benefit from $612 billion in new liquidity during the first quarter of 2025, according to Arthur Hayes, co-founder of BitMEX.
This surge may counteract investor concerns surrounding delays in cryptocurrency regulations under the incoming Trump administration.
Recent price action
Bitcoin fell nearly 6% on Jan. 8, slipping below the $100,000 mark, a psychological resistance level since December.
While President-elect Donald Trump’s inauguration on Jan. 20 is expected to bring optimism to the cryptocurrency sector, slow implementation of pro-Bitcoin policies could dampen enthusiasm.
Hayes’ market analysis
Hayes, in a Jan. 7 blog post, highlighted the Federal Reserve’s injection of liquidity as a critical factor.
Hayes wrote in his analysis, predicting Bitcoin would reach a temporary high in March 2025:
A letdown by team Trump on his proposed pro-crypto and pro-business legislation can be covered by an extremely positive dollar liquidity environment.
Long-term outlook
The anticipated correction may stem from delayed policy implementation, which Hayes said could trigger a “vicious sell-off.”
Despite this, analysts predict a long-term Bitcoin cycle top above $150,000 by late 2025, driven by a $20 trillion global money supply increase.
Institutional interest
Institutional investors also remain bullish.
New York Stock Exchange-listed KULR Technology Group recently forecast Bitcoin would exceed $200,000 by 2025 after purchasing Bitcoin at $97,000 on Jan. 7.
