Bitcoin has shown volatility, but many analysts believe the worst is over. Arthur Hayes claims the dip to $77,000 was the bottom, predicting a rally fueled by Fed's monetary policy changes and political developments in the US.
Bitcoin Bottom: $77K as the Lowest Mark
In March, Bitcoin dropped to $77,000, its lowest point since November. This correction worried investors, but Hayes believes it was the bottom. The price quickly rebounded to $87,000, showing strong buying interest. Hayes attributes this recovery to the Federal Reserve’s decision to slow quantitative tightening. Starting in April, the Fed is reducing the monthly Treasury cap from $25 billion to $5 billion, which means less pressure on financial markets and more liquidity, often benefiting Bitcoin.
Arthur Hayes on Fed Rate Predictions
Arthur Hayes believes the Fed will begin cutting rates by April 1. The central bank recently kept rates at 4.5%, but Hayes sees a shift coming. Lower interest rates would increase liquidity, making Bitcoin more attractive to investors looking for better returns. Hayes also pointed to the potential return of quantitative easing, which would further boost asset prices. If the Fed stops QT and moves toward QE, Bitcoin could see massive gains.
Trump's Policy and Its Impact on Crypto Market
Political factors also influence Bitcoin’s price. The Trump administration has taken a friendlier stance on crypto, which could be bullish for BTC. Trump recently posted on Truth Social, urging the Fed to cut rates, calling April 2 'Liberation Day in America.' There are also rumors that Trump might announce a major crypto policy shift soon. His nomination of Paul Atkins, a pro-crypto figure, as SEC chair has boosted market confidence. Some analysts believe this could lead to regulatory clarity, making institutional investment in Bitcoin easier.
Bitcoin’s recent dip to $77,000 now looks like a bottom. Arthur Hayes and other analysts expect a major rally as the Fed shifts its monetary policy. If QT ends and rate cuts begin, Bitcoin could soar past $90,000 in the coming months. Political developments, including Trump’s crypto-friendly stance, could further support Bitcoin’s rise. While some caution that QT is not fully over, the overall sentiment is turning bullish.
