Bitcoin (BTC) Price Prediction: Arthur Hayes Says Next Stop Is $110K

With Trump's April 2 tariff deadline approaching, traders are cautious

Top cryptocurrency trader Arthur Hayes is doubling down on his bullish outlook for Bitcoin, predicting a run to $110,000 as he anticipates a shift in Federal Reserve policy.

With institutional demand surging and key economic data in focus, it appears that the rally may be far from over.

Arthur Hayes Is Confident Bitcoin Price Will Reach $110K

Former BitMEX CEO Arthur Hayes continues to be optimistic about Bitcoin's price movements. In his latest blog post, Hayes predicts that Bitcoin will test the $76,500 level again after hitting $110,000.

This optimism stems from his expectations that the Federal Reserve will soon shift from quantitative tightening (QT) to quantitative easing (QE), a move that could inject more liquidity into risk assets.

While Trump's April 2 tariff deadline is approaching, Hayes dismissed concerns over its impact, aligning with Fed Chair Jerome Powell's stance that any inflationary effects will be temporary. Instead, Hayes believes that the administration's actions will have a minimal effect on the broader economy.

Bitcoin Shows Strength Ahead of Inflation Report

This week will see the Federal Reserve release its core PCE price index, the central bank's preferred inflation gauge. Analysts polled by Bloomberg anticipate a slight uptick from 2.6% to 2.7%.

This reading could shape market sentiment for risk assets like Bitcoin. Additionally, the Fed will release its final one-year inflation forecast, offering further clues on its monetary policy direction.

As for Bitcoin, the cryptocurrency showed renewed strength on Wednesday, climbing 3.5% to trade above $86,700. Trading volume surged by 74%, and futures open interest rose 7.79% to over $56 billion.

Short sellers faced heavy liquidations, with $50 million wiped out in the past 24 hours. This liquidation cascade occurred as Bitcoin price moved above $80,000, a level that had been a strong resistance in previous months.

Crypto Market Surges

The crypto market is also showing strong signs of recovery, with most major altcoins rising alongside Bitcoin.

Ethereum increased by 3.3% to reach $2,069, while XRP showed gains of 3.1%. Among the top ten cryptocurrencies, Solana led with a 6.2% surge. Cardano and Polygon followed with rises of 2% and 2.8%, respectively.

Among the meme coins, Dogecoin went up 3.5%, and TRUMP soared by 9.4%. This surge in meme coins could be linked to the recent attention given to the 2024 US presidential candidates.

The optimistic tone of the crypto market was also evident in the performance of Bitcoin futures. On Wednesday, the price of the flagship cryptocurrency rose by 3.5%, reaching $86,675 by 12:58 p.m. ET. This increase followed a 74% surge in trading volume and a 7.79% rise in futures open interest to over $56 billion.

However, despite the overall positive market sentiment, some market participants remain bearish. Notably, in the past 24 hours, $50 million in short positions were liquidated as Bitcoin broke through the psychological barrier of $80,000. This level had acted as a strong resistance for several months.

Institutional Interest in Bitcoin Continues to Grow

In the realm of institutional interest, US-listed spot Bitcoin ETFs have recorded six consecutive days of inflows, signaling renewed demand for the cryptocurrency.

Moreover, corporate giants are steadily expanding their Bitcoin purchases. For instance, Japan-based Metaplanet has added 150 BTC to its holdings, incrementally increasing its overall stash to 3,350 BTC.

With a year-to-date yield of 68.3%, the company appears to be placing a significant focus on its Bitcoin strategy, backed by key figures like Eric Trump and Michael Saylor.