Arthur Hayes Predicts Bitcoin Could Reach $250K by Year-End Amid Fed Policy Shift
BitMEX founder Arthur Hayes suggested that Bitcoin’s price action is entirely driven by market expectations regarding future fiat money supply.
In his latest article, Hayes argues that Bitcoin (BTC) could climb toward a $250,000 target by the end of 2025 if the U.S. Federal Reserve makes a major policy shift from quantitative tightening (QT) to quantitative easing (QE) for Treasury bonds.
According to Hayes, Bitcoin responds sharply to changes in monetary policy, acting as a barometer for global liquidity conditions.
Hayes points out that previous periods of aggressive money printing, such as during the COVID-19 stimulus period, have led to significant rallies in Bitcoin and other risk assets.
If the Fed reverses its QT stance and continues to buy Treasuries through QE, it could inject a large amount of liquidity into the financial system.
Hayes argues that this will drive investors into hard assets like Bitcoin, strengthening Bitcoin’s 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 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.
With Bitcoin set to surpass its all-time high in 2025, macro trends and central bank policies could play a decisive role in determining whether Hayes can achieve his six-figure prediction.
*This is not investment advice.