Arthur Hayes prophesied Bitcoin rally to $ 250,000 by the end of 2025 by renewed Fed's monetary policy

<p> <strong> Arthur Hayes prophesied Bitcoin rally to $ 250,000 by the end of 2025 by renewed Fed's monetary policy </strong> </p>

Bitcoin on the way to $ 250,000 by the end of 2025: Arthur Hayes' forecast

Arthur Hayes, the co-founder of the Bitmex crypto exchange, commented on his optimistic prediction regarding Bitcoin on Wednesday. He predicts that the digital currency could increase to $ 250,000 by the end of 2025. This assessment is based on the assumption that Scott Bessent, who acted as finance minister under Donald Trump, will persuade Jerome Powell, the chairman of the Federal Reserve, to loosen the monetary policy to support the US government.

In a current essay published on his blog, Hayes pointed out that Powell could give in to the growing fiscal pressure and introduce the quantitative loosening again. He criticized that current financial mathematics is no longer sustainable if the Federal Reserve does not act.

Arthur Hayes observes the political developments in the United States, especially Trump's influence on economic policy. In his essay, he reflected on the various views that may be chaotic procedure via Trumps. Some analysts fear that Trump could destabilize everything, while others argue that he is seriously trying to reform the economic and military structures of the United States. Hayes emphasizes that it is ultimately crucial for investors how much Fiat currency circulates in the system.

trade rules and the influence on the markets

Hayes emphasizes that both Republicans and Democrats want to change the global trade rules, which has been a central agenda since Trump's presidency. Joe Biden continued this direction and concluded China's access to US markets. In this context, Hayes mentions that the previous import strategy that favored China is harmful to the United States in its debt and trade balance.

In particular, Hayes emphasizes that the USA needs a financial partner after the withdrawal of investments from countries like China to finance the debts. Scott Bessent, the current finance minister, plans to reduce the deficits of the United States by 2028, while US loans continue to increase every year. Hayes warns that the interest payments will grow exponentially in the coming years.

The role of the Federal Reserve

Hayes argues that inflation and interest rates for the government bonds that are needed to finance the debts do not match. The average interest rate for the $ 36 trillion debts is only 3.282 %, while investors should request at least 5 % return if the business forecasts show these values.

He emphasizes that the banks are restricted by regulations, which makes it difficult for them to buy government bonds. This situation could force the Federal Reserve to increase its balance sheet, especially since the target of 2 % inflation seems unrealistic.

Review of the past and Bitcoin’s future

Hayes sees parallels between the current situation and the years 2008 to 2010. At that time when the Federal Reserve began with quantitative loosening, gold rose while the stock markets stagnated. He extrapolates this pattern on Bitcoin and argues that digital assets that are not based on state support will soon also react to the flood of money.

Overall, Hayes estimates that Bitcoin could soon increase to $ 76,500 and speculate that the brand of $ 250,000 can be reached by the end of 2025, while the stock markets are still under pressure. His belief in Bitcoin remains unshaked because it is convinced that the technology remains stable and the main topic will be inflation and the range of fiat currency.

This assessment indicates that Hayes expects a downward position for traditional financial systems and a parallel upward movement for Bitcoin.