Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur Hayes

According to market analysts, Bitcoin may reach an all-time record of $110,000, before undergoing any major retracement. The factors that are driving the rally include a easing in inflation, and a rise in global liquidity.

BitcoinBTCTradingView’s data show that ) is up for the past two weeks. On March 23, it reached a weekly bullish close of just over $86,000.

Arthur Hayes is the co-founder and chief investment officer at Maelstrom, and said that a combination of waning inflation concerns could set up Bitcoin to reach its all-time record high of $110,000.

Hayes stated in an article published on March 24, X post:

“I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries. And tariffs don’t matter cause of “Inflation transitory” JAYPOW told me so.”

“What I mean is that the price is more likely to hit $110k than $76.5k next. If we hit $110k, then it’s yachtzee time and we ain’t looking back until $250k,” Hayes also added an additional follow-up. post.

The US Federal Reserve can shrink its balance sheet through quantitative tightening by either selling or maturing bonds without investing the proceeds. quantitative easing (QE) This means the Fed will buy bonds and inject money into an economy in order to lower interest rate and stimulate spending when financial conditions are difficult.

Some analysts have pointed out that the Fed, while it may be slowing QT at this time, hasn’t yet completely shifted to an easing policy.

“QT is not “This is basically it” on April 1st. They still have $35B/mo coming off from mortgage backed securities. They just slowed QT from $60B/mo to $40B/mo,” according Benjamin Cowen, the CEO and founder of IntoTheCryptoVerse.

Related: Bitcoin may recover to $90K amid easing inflation concerns after FOMC meeting

Bitcoin has traditionally been positively affected by the Fed’s anticipated pivot towards quantitative easing.

Last but not least, period In 2020, QE led to an increase of more than 1,000% in the price of Bitcoin. It went from $6,000 to $69,000 at that time. Analysts think a similar situation could form again.

Related: Bitcoin reserve backlash signals unrealistic industry expectations

Bitcoin could reach $110,000 if macro-conditions support it

Bitcoin’s rise to $85,000, after the Federal Open Market Committee’s (FOMC’s) last-week meeting, was a sign of optimism for investors and could indicate further gains, says Enmanuel cardozo, a market analyst with tokenization platform Brikken, which tokenizes real-world assets.

It is also important to consider the macroeconomic climate. “supports” The analyst said that Bitcoin could rise to $110,000.

“Global liquidity has risen, discussions around a US Bitcoin strategic reserve, potentially driving Bitcoin toward that $110,000 mark as BTC liquidity available in exchanges keeps dropping, leading to a supply squeeze scenario,” “He said”

“However, a correction to $76,500 aligns with Bitcoin’s historical volatility, often triggered by profit-taking or unexpected market shifts,” He added.

Hayes’ prediction is also viewed as highly likely to come true by other analysts.

“Given Bitcoin’s recent close above the 21-day and 200-day moving averages, this bullish momentum aligns with his view. However, the $88K resistance remains a key hurdle,” Ryan Lee, Chief Analyst at Bitget Research told Cointelegraph.

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The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.