Arthur Hayes Gave Hope for Bitcoin: The Rise of 250 Thousand Dollars Will Start with the FED! - Coin Bulletin

Arthur Hayes believes that Bitcoin will rise to 250,000 dollars by the end of the year, possible due to the FED's QE shift in Treasury bonds and the increase in dollar liquidity.

Arthur Hayes emphasizes that Bitcoin is traded entirely based on the markets' expectations for future fiat currency supply. If the analysis that the FED has made a significant shift towards QE of Treasury bonds is correct, Bitcoin will start to climb towards $250,000 by the end of the year.

Hayes states that last week Powell proved that fiscal sovereignty is still strong. Therefore, he believes that at least regarding Treasury bonds, the implementation of QT (quantitative tightening) will halt in the short and medium term. He adds that although Powell has a reduction plan for mortgage-backed securities (mortgage backed securities), he mentioned that he will make net purchases for Treasury bonds. This situation ensures that the FED's balance sheet remains stable, but is actually a Treasury QE. He predicts that Bitcoin will rise rapidly when this announcement is made. Additionally, since banks and the Treasury demand this, it is thought that Powell will provide the SLR (Liquidity Coverage Ratio) exemption, which would be another form of Treasury QE.

(# 2008 global financial crisis )GFC### example and effects of cryptocurrencies

Looking at the 2008 Global Financial Crisis, stocks and gold reacted positively to the increase in fiat liquidity. Stocks, however, need legal intervention from the state. Therefore, when the system's indebtedness problem is questioned, stocks may react more slowly than anti-establishment financial assets such as gold. Hayes notes that Bitcoin didn't exist in 2008, but it does now. The value of Bitcoin is a combination of technology and fiat liquidity.

(# Bitcoin and fiat currency liquidity

Hayes states that the technology of Bitcoin is solid and that there is no significant change expected in the short term. In this case, he emphasizes that Bitcoin is trading entirely based on market expectations. If the shift made by the FED regarding Treasury bonds is correct, Bitcoin made a bottom at the level of $76,500 last month and will begin to rise towards $250,000 by the end of the year. Hayes indicates that he will bet that Bitcoin will climb to $110,000 before reaching $76,500.

)# Good fundamentals for Bitcoin's rise

U.S. stock markets continue to decline due to reasons such as tariffs, falling earnings expectations, and decreasing foreign demand, but Hayes believes that Bitcoin will continue to rise. The investment firm called Maelstrom is cautiously investing capital in the market and is only making small purchases. Hayes believes that Bitcoin will reach $250,000 by the end of the year and argues that the FED's flooding of the market with dollars is one of the main reasons for this.