The year 2025 could well start with a bang for bitcoin, thanks to a $612 billion liquidity injection by the US Federal Reserve. Arthur Hayes, predicts that this increase in liquidity could offset potential disappointments related to the Trump administration's crypto policies.
The FED could propel Bitcoin to a new ATH in March 2025!
In a recent analysis, Arthur Hayes, founder of BitMex, explains that the inauguration of Donald Trump on January 20 could lead to an acceleration in money printing, creating a favorable environment for bitcoin. According to him, a massive injection of $612 billion by the FED could propel BTC to a new ATH in March! Before a possible correction due to regulatory disappointments.
Hayes points out that even if the Trump administration fails to quickly implement cryptocurrency-friendly policies, the positive liquidity environment could mitigate the negative impacts. He predicts that the market could see a sell-off if regulatory expectations are not met, but remains optimistic about the long-term trajectory of bitcoin's price.
Analysts share this optimism of Hayeswith some forecasting a cyclical peak above $150,000 by the end of 2025. This, fueled by a projected $20 trillion increase in global money supply. This increase could attract $2 trillion in investment into bitcoin.
BTC back to $100,000 before January 20?
Recently, the price of BTC fell almost 6% in 24 hours, currently trading at $94,748. This decline is attributed to reduced activity by institutional investors during the holiday season. However, these investors are expected to redeploy their capital in early 2025, providing an institutional liquidity boost that could help bitcoin surpass $100,000 again before Donald Trump's inauguration on January 20.
Although regulatory challenges may be on the horizon, money printing from the US Federal Reserve (FED) could provide crucial support for bitcoin in the first quarter of 2025. Paving the way for a potentially prosperous year for the crypto most famous in the world.
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