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- Arthur Hayes maintains that Bitcoin could reach $250,000 by year-end.
- He believes Bitcoin has already found a market bottom after recent declines.
- Expanding liquidity and expected Federal Reserve policy changes may drive the next rally.
According to the report, former BitMEX CEO Arthur Hayes continues to defend his bold forecast for Bitcoin. He predicts the cryptocurrency could surge to $250,000 before the year closes. In a recent appearance on the Milk Road Show, Hayes refused to retreat from this projection despite the limited time remaining in the year.
The prediction implies a 170 percent rally from current levels. Many analysts consider such a move aggressive and unlikely. Hayes, however, points to macroeconomic trends that could make it possible. He believes stronger liquidity and renewed investor demand could push Bitcoin toward a new all-time high.
Hayes emphasizes that the market will either reach this target or not. He is comfortable with either outcome. His conviction comes from recent market signals and broader financial trends, which he views as supportive of a major rally.
Institutional Activity Supports Bitcoin Stabilization
Hayes is of the view that Bitcoin has hit the bottom of the market. Last week, the cryptocurrency dipped to a low of about $80,600 following a sharp decline. However, the cryptocurrency has since recovered by about 12 percent, rising to $92,485 after the decline.
Hayes is of the view that this is a sign of stability in the Bitcoin market. In addition, the decline in October was a major leverage liquidation. Billions of dollars were lost in the process, and this has led to a reset in the market.
Hayes is of the view that this has set the stage for a stronger rise in the coming days. In addition, the inflows recorded in the BlackRock Bitcoin Exchange Traded Fund were a part of a basis trading strategy.
Large institutions used the fund to obtain loans and subsequently take short positions in the futures markets. However, after the funding costs fell, the institutions sold their shares. According to Hayes, this has largely been done, and this has set the stage for a rise in cryptocurrency.
Hayes Sees Fed Easing Driving Bitcoin Higher
Hayes is anticipating that macroeconomic liquidity will fuel the next rally. He is anticipating that global dollar liquidity has bottomed out. Liquidity is usually expected to increase, which will prompt people to invest in riskier assets, including Bitcoin.
The Federal Reserve has already lowered interest rates by 25 basis points last October. There is a high probability, according to prediction data, that they will cut interest rates again before mid-December. There is also an expectation that quantitative tightening will soon be stopped by the Fed, which will translate into more money flowing through financial markets.
Hayes is anticipating that Bitcoin will go higher than its current all-time high price, which is $126,220. If the trend is maintained, it is expected to reach $250,000 by the end of the year, which is Hayes’s projection.
Also Read: Strategy Becomes Most Shorted Large-Cap Stock as Bitcoin Slump Fuels Bearish Bets
