In 2025, Bitcoin could face new highs amid a potential $612 billion liquidity injection from the US Federal Reserve. This scenario is predicted by BitMex founder Arthur Hayes.
The FED and its Impact on Bitcoin
BitMex founder Arthur Hayes suggested that Donald Trump's inauguration on January 20 might trigger accelerated monetary printing, creating a favorable climate for Bitcoin. Hayes believes the FED's $612 billion injection could lead to a new ATH for the cryptocurrency by March, despite potential regulatory disappointments.
Analysts' Predictions
Even if regulatory policies do not meet expectations, a positive liquidity environment could ease negative impacts on Bitcoin. Hayes predicts a massive sell-off if regulatory expectations are not met, but remains optimistic about Bitcoin's long-term trajectory. Analysts share Hayes' optimism, forecasting peak prices above $150,000 by the end of 2025, fueled by a predicted $20 trillion increase in global money supply. This growth could attract $2 trillion investments into Bitcoin.
Bitcoin Before Trump's Inauguration
Recently, the price of Bitcoin dropped nearly 6% in 24 hours, trading at $94,748. This decline is attributed to decreased activity from institutional investors during the holiday period. However, these investors are expected to redeploy their capital at the beginning of 2025, providing a boost of institutional liquidity that might help Bitcoin surpass $100,000 again before Donald Trump's inauguration on January 20. Despite potential regulatory challenges, the FED's monetary injections could provide crucial support for Bitcoin in Q1 2025, paving the way for a potentially prosperous year for the world’s most famous cryptocurrency.
The potential liquidity injection by the FED could be a significant factor for Bitcoin's price dynamics in 2025. Regulatory uncertainty complicates the environment, but influential factors support an optimistic outlook for the cryptocurrency's rate.
