The Fed’s Money-Printing Shift May Fuel Bitcoin’s Price Surge

The Fed’s money-printing shift may fuel Bitcoin’s price surge. BitMEX co-founder Arthur Hayes predicts that Bitcoin will blow past $110,000

BitMEX co-founder Arthur Hayes has predicted that Bitcoin (BTC) will blast past $110,000 before pulling back to $76,500 as the central bank switches from tightening to easing—which could inject liquidity into the market and drive up the digital asset’s price.

“I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries,” Hayes stated in a post on X (formerly Twitter) on Sunday.

The optimistic price targets stem from Hayes’ belief that the Federal Reserve's monetary policy shift will ultimately be a key driver of Bitcoin's price movements. According to Hayes, the central bank is likely to begin buying up Treasury bonds again after a period of quantitative tightening (QT), leading to increased liquidity in the market and potentially boosting Bitcoin's price.

However, Hayes' prediction may be impacted by several factors, including the potential imposition of tariffs by the U.S. administration, which could negatively affect Bitcoin's price.

Moreover, considering that inflation is a key factor influencing the Fed's monetary policy decisions, any unexpected changes in the inflation rate could also influence the trajectory of Bitcoin's price.

Meanwhile, 10X Research founder Markus Thielen has also projected that Bitcoin may be able to rebound from its recent lows.

In a March 23 report, Thielen stated that Bitcoin's price may have reached its lowest point in the recent downturn and is now poised for a recovery. According to the analyst, two main catalysts that could alleviate market concerns and potentially boost investor confidence are the Fed's dovish stance on inflation and former President Trump's flexibility on tariffs.

"The Fed signaled it might look past short-term inflationary pressures, laying the groundwork for potential future easing," explained Thielen.

According to him, the relaxed political climate and favorable economic forecasts have ultimately turned Bitcoin's indicators bullish. Among these indicators, Thielen highlighted the behavior of Bitcoin holders and exchange-traded funds (ETFs).

In particular, Thielen noted that Bitcoin is unlikely to enter a deep bear market since the large Bitcoin holders are likely long-term investors who are less sensitive to price fluctuations.

According to the analyst, the return of inflows to U.S.-based spot Bitcoin ETFs is also a positive sign, indicating reduced selling pressure from arbitrage-focused investors.