Arthur Hayes: Bitcoin to $110K Thanks to Fed’s QE – “JAYPOW Told Me So”

Arthur Hayes, the co-founder of the cryptocurrency exchange BitMEX, has shared his latest analysis on Bitcoin’s price trajectory, predicting a significant increase in its value before a likely downward correction.

In his X post, Hayes suggested that Bitcoin has the potential to climb to $110,000 in the near future but might then fall back to test support levels around $76,500.

Why Does Arthur Hayes Expect Bitcoin to Reach $110,000?

Hayes attributes the anticipated short-term bullish momentum to a shift in the monetary policy of the U.S. Federal Reserve (Fed). He believes the Fed’s move from quantitative tightening (QT) to a more accommodative stance involving quantitative easing (QE) will inject more liquidity into the market through U.S. government bonds.

He also commented that the impact of increased import tariffs on inflation is likely to be minimal, echoing Fed Chair Jerome Powell’s description of current inflation as “temporary.” Despite his optimism for the immediate future, Hayes cautioned that the broader economic landscape remains uncertain, pointing to potential risks associated with these policy changes.

Related: Binance Stablecoin Hoard Hints at Bitcoin Rally as Market Cap Hits $230 Billion: Why So?

What is Hayes’s Longer-Term Outlook for Bitcoin?

Earlier this year, Hayes made headlines within the crypto community by forecasting that Bitcoin could soar to $250,000 by the end of 2025. This ambitious price target hinges on his expectation of continued capital flowing into the market as a result of the Fed’s ongoing policies. Hayes argues that Bitcoin stands to benefit significantly from this influx of capital as more money circulates within the economy.

Hayes has also considered the influence of global monetary policies, particularly those influenced by U.S. President Donald Trump’s decisions regarding tariffs. He proposes that these policies might be strategically designed to induce recessionary fears, potentially leading the Fed to further devalue the U.S. dollar.

Do Other Experts Agree with Hayes’s Prediction?

Despite Hayes’s bullish forecasts, some market analysts advise caution. Ki Young Ju, the CEO of CryptoQuant, contends that current on-chain metrics suggest a bearish trend for Bitcoin in the short term.

Ju predicts that Bitcoin’s price could experience sideways or negative movement over the next six to twelve months.

How is Bitcoin Performing Currently?

At the time of this report, Bitcoin had experienced a significant surge, reaching $86,866.61, which represents a 3.30% increase over the past 24 hours.

Additionally, Bitcoin’s market capitalization climbed to $1.72 trillion, accompanied by a daily trading volume of $17.08 billion—a remarkable 78.82% increase in a single day, according to CoinMarketCap data.

Source: CoinMarketCap

Related: Expert at First SEC Crypto Roundtable: Bitcoin Neither Security Nor Investment

This recent price surge is occurring against a backdrop of increasing scarcity, with only an estimated 2.16 million BTC remaining to be mined, further hyping the bolstering demand for BTC.