BitMEX founder Arthur Hayes speculates that the actions of the U.S. Federal Reserve could significantly affect Bitcoin's value, pushing it to $250K by the end of 2025.
Impact of Monetary Policy on Bitcoin
Hayes believes Bitcoin’s price action is entirely driven by market expectations regarding future fiat money supply. He notes that Bitcoin responds sharply to changes in monetary policy, acting as a barometer for global liquidity conditions.
Return to Quantitative Easing
According to Hayes, if the Fed reverses its stance on quantitative tightening and resumes buying Treasuries through quantitative easing, it could inject a large amount of liquidity into the financial system. This could drive investors into hard assets like Bitcoin, strengthening its role as a hedge against fiat devaluation.
Can Bitcoin Reach $250K?
Hayes’ $250,000 Bitcoin price target is based on the assumption that the Fed will ease policy in the face of economic pressures. While such a target is ambitious, increasing speculation that monetary policy will shift could further fuel bullish sentiment in the crypto market.
Bitcoin's future trajectory will be heavily influenced by macro trends and central bank policies, which could play a decisive role in whether Arthur Hayes' predictions materialize.
