Bitcoin’s been pretty chill lately, bouncing around between $81,000 and $89,000. This calm has traders feeling relieved – a big crash below $80,000 seems less likely now. Selling is slowing down, buyers are stepping in, and it looks like we’re in an accumulation phase – often a sign of a price surge.
Hayes’ Big Call: $110,000 First!
But even with things looking calmer, there’s still a chance of a drop below $80,000. However, crypto expert Arthur Hayes has made a bold prediction: Bitcoin will hit $110,000 before it dips back down to $76,500.
That’s a big jump considering Bitcoin’s current price is closer to $76,500 than $110,000! Reaching $110,000 would be a new all-time high, surpassing the previous peak of $108,786. A drop to $76,500 is a real possibility though, as it’s just below this month’s low.
Hayes shared his prediction on X (formerly Twitter), explaining that market momentum and changes in monetary policy are more likely to push Bitcoin up than cause another correction. He even suggested that after crossing $110,000, Bitcoin could skyrocket towards $250,000! Other analysts share similar optimistic views.
The Fed’s Role: QE Over QT?
Hayes’ prediction is based on the Federal Reserve’s changing approach to money supply. He points out the Fed is shifting from quantitative tightening (QT) – reducing the money supply – towards quantitative easing (QE) – increasing the money supply, especially in the Treasury markets. There’s talk of slowing down or even pausing the reduction of the Fed’s balance sheet. Some analysts even predict a full-blown QE approach. This could flood the financial system with cash, boosting assets like Bitcoin.
Hayes also downplayed inflation concerns, suggesting the Fed Chair considers it “transitory.”
At the time of writing, Bitcoin is trading around $86,600, recently hitting a high of $88,713. Whether Hayes’ prediction will come true remains to be seen, but it’s certainly a bold statement in the ever-volatile world of cryptocurrency.
