Amid recent fluctuations, Bitcoin continues to capture the attention of investors and analysts. Arthur Hayes, a renowned crypto analyst, shares his vision of the cryptocurrency's future in the context of the US Federal Reserve's economic policy.
The Fed's Role in Bitcoin's Rise
Arthur Hayes emphasizes the significance of the Federal Reserve's economic policy in shaping Bitcoin's future rates. He notes that Scott Bessent's appointment as Treasury Secretary will influence Jerome Powell, who might return to a policy of quantitative easing (QE) to finance the growing US government debt, especially amidst waning foreign interest in US Treasuries.
Powell's Dilemma: Hold Firm or Give In?
Jerome Powell has previously resisted easing monetary policy, but Hayes highlights signs of submission. For instance, the Fed cut rates in September 2024 to support Kamala Harris during the election campaign. Hayes argues that such moves are effectively stealth QE, a scenario under which Bitcoin thrives. Scott Bessent suggested relaxing post-2008 banking rules to potentially free up billions for Treasury purchases.
Bitcoin's Path to Six Figures and Beyond
The analyst compares the current setup to the gold rally following the first QE wave in 2008–2010. Hayes believes that Bitcoin, as a non-sovereign asset, will react even more dramatically to increased fiat liquidity. With Bitcoin rebounding from $76.5K, Hayes forecasts its rise to six figures, aiming at $250K by year-end. If the Fed activates the money printer, Hayes is confident this will significantly boost the cryptocurrency's market value.
Arthur Hayes continues to monitor the dynamics of Bitcoin and the impact of economic policies. His predictions suggest a substantial increase in cryptocurrency value amid shifts in US financial policy.
