Crypto Market to Peak in March 2025, Followed by a Crash, Predicts Arthur Hayes

Major crypto events this week include Arthur Hayes predicting a crypto market peak in Q1 2025, Robert Kiyosaki warning of an impending market crash, Shiba Inu announcing the launch of its TREAT token, and 13 U.S. states initiating efforts to establish Bitcoin reserves.

Here's a summary of the key developments:

1. Arthur Hayes: Crypto Market to Peak in March, Followed by a Crash

Former BitMEX CEO Arthur Hayes has predicted that the crypto market will reach its peak in March 2025. However, he anticipates a sharp correction afterward.

Hayes suggested that optimism related to a potential Trump election victory might diminish if campaign promises fail to materialize. For the short term, he noted that increasing dollar liquidity could prop up the markets.

Hayes expects the Federal Reserve to be withdrawing $180 billion of liquidity by the end of Q1 as part of its quantitative tightening policy. However, he notes that this will be offset by a $237 billion injection, resulting in a net positive liquidity of $57 billion. Hayes suggests that investors consider selling at the end of Q1.

2. Robert Kiyosaki: A Massive Bitcoin and Market Crash is Imminent

Robert Kiyosaki, the author of Rich Dad Poor Dad, claims that the largest market crash in history is on the horizon. Criticizing the 2008 financial crisis bailout policies, Kiyoski particularly targeted banks.

In his predictions for 2025, Kiyosaki expects the prices of assets such as housing, gold, silver, and Bitcoin to decline, presenting buying opportunities. Last week, Bitcoin’s price dropped from $102,000 to $92,000. As of writing, BTC has recovered slightly to $94,932.

3. Shiba Inu Announces TREAT Token Launch

Shiba Inu has announced plans to launch a new token, TREAT, in January. TREAT is designed to provide governance and rewards across the ecosystem.

However, U.S. users will not have access to TREAT, likely due to regulatory restrictions. While SHIB prices have been trending downward in recent weeks, a recovery is anticipated following the token’s launch.

Kriptokoin.com has covered the new token in detail in this article.

4. 13 U.S. States Take Steps Toward Bitcoin Reserves

According to Dennis Porter, CEO of the Satoshi Action Fund, 13 states have begun legislative efforts to establish Bitcoin reserves. Porter stated that 2025 will set records for Bitcoin-related policies.

States like Texas, Ohio, and Pennsylvania are leading this initiative. Bitcoin’s position as a strong alternative to traditional assets, particularly gold, has sparked ongoing debates.

5. FDIC Signals a Halt to Bank Crypto Services

Coinbase reported that the U.S. Federal Deposit Insurance Corporation (FDIC) has instructed banks to cease their crypto services as part of a broader regulatory strategy.

Paul Grewal, Coinbase’s Chief Legal Officer, noted that this move aims to limit banks’ crypto operations. This development raises questions about the future of crypto services within traditional banking channels.

These rapid developments in the crypto market are a testament to the ever-changing nature of the industry. From innovative projects to regulatory maneuvers, the impact of these shifts remains a key point of focus for investors.

As crypto innovation continues, keeping an eye on these dynamics will be crucial for market participants.

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