A recent blog Arthur Hayes, a serial crypto-entrepreneur and expert commentator, predicted in a post that the fresh injections of liquidity into the US economic system following Donald Trump’s election could lead to a Bitcoin rally (BTC), Q1 2025.
Money Printing To Propel Bitcoin?
BTC’s price plunged to $94,543 today after surging above $100,000 yesterday. The so-called Bitcoin bubble is now in doubt. “Trump rally” Many expected that the Trump presidency would last through to January 20, 2019.
Related Reading
Hayes December market forecast is in line with recent market activity warned A potential “harrowing dump” Around Trump’s inauguration, there was a significant drop in cryptocurrency prices. Hayes at the time attributed the predicted decline to the perceived disappointments of the new Trump administration.
Hayes, however, suggested in his most recent post that the US Federal Reserve (Fed’s) plan to inject fresh $612 billion liquidity into the US economy may compensate for the lack regulatory progress, and could ignite a new bullish trend for BTC. BitMex’s co-founder commented:
The dollar liquidity situation, which increased by up to $612 Billion in the first three months of 2017, can cover any disappointment by Team Trump regarding his pro-crypto legislation and business-friendly proposals.
Hayes said that after Trump’s election, the Fed will likely ramp up its money printing. This would drive BTC and digital assets into a temporary peak before pulling back. He also said that disappointment in the crypto market over Trump’s administration’s lagging regulations would worsen this correction.
He advised waiting until Q3 to see favorable liquidity conditions return. Hayes said that once fresh liquidity entered the market it was time for investors who are willing to take on risk. “turn the risk dial to degen.”
Opinion Split On BTC Price Action
Hayes expects BTC to rally this quarter. However, many analysts and commentators are cautious. A recent report from 10x Research, for example. noted BTC could lose its bullish momentum if the Fed delays in reducing interest rates.
Technical analysis is also important. suggests BTC could be forming an inverse head-and shoulders pattern, which is a sign of bearishness. This raises fears that the price may fall to $80,000. The bulls are further agitated by yesterday’s inability to reclaim $100,000.
MARA’s CEO, who is also a Bitcoin miner, recently announced that the company has been acquiring a new Bitcoin mining facility. advocated a long-term “invest and forget” BTC strategy He said that the US could create a strategic Bitcoin reserve, which would spark a race for nations to collect BTC and drive up its value.
BTC has institutional interest already As evidenced by record-breaking inflows received US Spot Bitcoin Exchange-Traded Funds (ETF) BTC is currently trading for $95,154 at press time. That’s a drop of 3.6% over the last 24 hours.
Chart by TradingView.com, Featured Image from Unsplash
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com
