Bitcoin Could Hit $110K Before Retracing, Says Arthur Hayes
Bitcoin (BTC) may soon reach a new all-time high of $110,000 before experiencing any significant pullback, according to Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom. Hayes cites easing inflation concerns and increasing global liquidity as key factors supporting Bitcoin’s bullish momentum.
Bitcoin Price Momentum and Market Sentiment
Bitcoin has recorded two consecutive weeks of gains, recently closing above $86,000 on March 23, according to TradingView data. This bullish momentum, combined with fading inflation worries, has led analysts like Hayes to predict further upside.
Hayes stated in a recent 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 ‘transitory inflation.’ JAYPOW told me so.”
He further clarified:
“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.”
Quantitative Easing and Bitcoin’s Historical Performance
Quantitative easing (QE), a monetary policy where central banks inject liquidity into the economy by purchasing bonds, has historically been positive for Bitcoin. The last QE cycle in 2020 saw Bitcoin surge over 1,000%, from around $6,000 in March 2020 to a record high of $69,000 in November 2021.
Currently, the Federal Reserve has slowed its quantitative tightening (QT) measures, reducing monthly asset sales from $60 billion to $40 billion. While some analysts caution that QT has not fully ended, market participants anticipate a pivot to QE, potentially fueling Bitcoin’s rally.
Macro Conditions Supporting Bitcoin’s Rally
Emmanuel Cardozo, market analyst at Brikken, highlighted macroeconomic factors supporting Bitcoin’s potential rise to $110,000:
- Increasing global liquidity.
- Discussions around a potential U.S. Bitcoin strategic reserve.
- Declining BTC liquidity on exchanges, creating a supply squeeze.
However, Cardozo also noted that a correction to $76,500 would align with Bitcoin’s historical volatility, often triggered by profit-taking or unexpected market shifts.
Ryan Lee, chief analyst at Bitget Research, agreed with Hayes’ bullish outlook but emphasized the importance of overcoming the $88,000 resistance level.
Quick Summary
- Arthur Hayes predicts Bitcoin will reach $110,000 before retracing to $76,500.
- Easing inflation and potential Fed pivot to QE support bullish sentiment.
- Historical QE cycles have significantly boosted Bitcoin prices.
- Macro factors like global liquidity and declining exchange supply further support bullish outlook.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
