The year 2025 could very well start off with a bang for bitcoin, thanks to a liquidity injection of $612 billion from the U.S. Federal Reserve.
2025 could start off with a bang for bitcoin, thanks to a liquidity injection of $612 billion from the U.S. Federal Reserve. This could offset potential disappointments related to the Trump administration’s crypto policies.
Arthur Hayes predicts that a massive injection of $612 billion by the FED could propel BTC to a new ATH in March, before a potential correction due to regulatory disappointments.
March could see bitcoin reach a new all-time high (ATH), thanks to a liquidity boost from the U.S. Federal Reserve (FED). At the same time, Donald Trump’s inauguration on January 20 could lead to an acceleration of monetary printing, creating a favorable environment for bitcoin.
In his latest analysis, BitMex founder Arthur Hayes predicts that this increase in liquidity could propel the price of bitcoin to new heights. According to his calculations, we could expect to see a new ATH for BTC in March, before a potential correction due to regulatory disappointments.
Hayes also notes that even if the Trump administration fails to quickly implement favorable cryptocurrency policies, the positive liquidity environment could mitigate potential negative impacts. In his view, if regulatory expectations are not met, we can expect to see a massive sell-off, but he remains optimistic about the long-term price trajectory of bitcoin.
As we approach the end of 2025, some analysts are sharing Hayes' optimism, with projections of a cyclical peak above $150,000. This optimism is fueled by a projected increase of $20 trillion in global money supply, which could attract $2 trillion in investments into bitcoin.
Bitcoin back to $100,000 before January 20?
Over the past 24 hours, the price of BTC has dropped by nearly 6%, currently trading at $94,748. This slight decline in activity can be attributed to institutional investors who are largely inactive during the holiday period. However, as we move into the beginning of 2025, these investors are expected to redeploy their capital.
This institutional liquidity boost could help propel bitcoin to once again surpass the $100,000 mark before Donald Trump's inauguration on January 20. From there, we can expect to see the price continue to fluctuate as the market adjusts to the latest regulatory developments.