Arthur Hayes Predicts Bitcoin Price 2025, Will There Be a Big Correction?

Bittime - Arthur Hayes, co-founder of BitMEX, provides Bitcoin price predictions 2025. Bitcoin and the crypto market as a whole are predicted to peak in March before entering a major correction. 

What is the basis for this prediction? Read this article to find out more about Bitcoin price predictions 2025 according to Arthur Hayes!

Bitcoin Price Prediction 2025: The Fed's Policy

According to Arthur Hayes' 2025 Bitcoin price prediction, the Federal Reserve's quantitative tightening (QT) policy is one of the main factors that will influence crypto market. 

Currently, the Fed is reducing liquidity by $60 billion per month, which is expected to reach a total of $180 billion in Q1 2025. This reduction in liquidity is predicted to create pressure in financial markets, including crypto.

However, Hayes believes that the Fed is approaching the limits of its monetary policy tools. In the near future, the Fed may have to stop carrying out QT and return to quantitative easing (QE) policies.  

Read Also: Why is Bitcoin Cs Down Today? Check out the reasons!

Bitcoin Price Prediction 2025: RRP and TGA

Bitcoin price prediction 2025 from Arthur Hayes also highlighted the important role of the Reverse Repo Program (RRP) and Treasury General Account (TGA) facilities in influence dollar liquidity. 

In Q1 2025, the RRP is expected to reduce from about $237 billion to zero, as money market funds maximize yield by buying higher-order Treasury bonds, which will inject $237 billion in dollar liquidity.

Meanwhile, the QT policy by the Fed will reduce $180 billion from market liquidity. The combination of these two factors will result in net funding of $57 billion in Q1 2025.  

Bitcoin Price Prediction 2025: Treasury Policy  

Bitcoin price prediction 2025 from Arthur Hayes also noted that Treasury policy by the US Treasury Department, under the leadership of Janet Yellen, will play an important role in the development of the crypto market. 

Treasury is expected to create a strategy to fund the government between January and March 2025. If Congress does not immediately increase the debt ceiling, this situation could lead to a potential debt default or government shutdown.

However, Arthur Hayes is optimistic that a deal will be reached, allowing the Treasury to resume borrowing funds and top up the TGA. This could create negative liquidity pressure in the market in the second half of 2025.

Read Also: Investors Target Bitcoin for Long-Term Investment, Here's Why!

Bitcoin Price Prediction 2025: Crypto Market Trends 2025

Bitcoin price prediction 2025 from Arthur Hayes too compare current crypto market conditions with the situation in previous years. 

Arthur Hayes notes that Bitcoin reached a local peak of around $73,000 in March 2024 before experiencing a significant decline ahead of the tax deadline in April. 

With a similar pattern expected to occur in 2025, Arthur Hayes predicts Bitcoin will peak in mid to late March, followed by sideways movement and a correction in April.

Read Also: Called Vladimir Putin and Jerome Powell, Bitcoin Prices Go Up Immediately!

Bitcoin FAQs

What are Bitcoins?

Bitcoin is the world's first crypto asset and the largest crypto asset by market capitalization. Bitcoin was first created in 2009 by Satoshi Nakamoto, whose true identity until now no one knows.

How many Rupiah is 1 BTC?

Currently, 1 BTC is worth IDR 1,564,323,292 based on the Bittime market. 

1 BTC How much is USD?

Currently, 1 BTC is worth $95,946.51 according to Coinmarketcap. 

How to Buy Crypto with Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

Cryptopolitan, Arthur Hayes believes the crypto market will peak in March before a severe correction, accessed January 8, 2024.

Coinmarketcap, Coinmarketcap Bitcoin Currency, accessed January 8, 2024.

Author: IPR