Crypto Market Predictions and Warnings for 2025: Arthur Hayes, Robert Kiyosaki, and More

Key crypto predictions and warnings for 2025 emerged this week, shaping the narrative around the digital asset landscape. Here are the highlights.

Arthur Hayes, the former CEO of BitMEX, outlined his predictions for the crypto market in Q1 2025. According to Hayes, the market will peak in mid-March, followed by a severe correction.

Hayes attempted to gauge whether the bullish momentum surrounding Trump's election victory will be sustained. He noted that the incoming president may be unable to fulfill all his campaign promises, leading to a shift in market sentiment. However, increasing dollar liquidity might counter the disappointment in the short term.

Hayes highlighted the correlation between Bitcoin's price and the decline of the Federal Reserve's Reverse Repo Facility (RRP) and the US Treasury's General Account (TGA) since Bitcoin bottomed in Q3 2022. The Fed's quantitative tightening will remove $180 billion in liquidity by the end of Q1 2025. Still, the recent adjustment to the RRP rate is expected to result in a $237 billion liquidity injection, yielding a net positive liquidity of $57 billion.

This liquidity is expected to fuel the crypto market. Arthur Hayes remained bullish on the crypto market in the near term but advised caution as the first quarter concludes.

“Sell in the late stages of Q1, then chill,” Hayes advised.

Robert Kiyosaki, the author of the bestselling book Rich Dad Poor Dad, warned that the biggest market crash in history is imminent.

Kiyosaki doubled down on his long-standing predictions, attributing the upcoming crash to decisions made during the 2008 financial crisis. He argued that leaders, including former Federal Reserve Chairman Ben Bernanke, prioritized bank bailouts over supporting ordinary citizens.

Looking ahead to 2025, he predicted that expensive assets like houses, gold, silver, and Bitcoin will soon be on sale. He also noted that the world was on the brink of war, which, in his view, was exacerbating the situation.

“Please be smart. Many expensive assets will go on sale. I'll be buying more real assets with fake US dollars,” Kiyosaki wrote on Twitter.

Meanwhile, over the past week, Bitcoin's price dropped from a peak of $102,000 to as low as $92,000. At press time, BTC was trading at $94,932 after recovering slightly.

Shiba Inu, the second largest meme coin, announced the launch of a new token in its ecosystem on January 2. The team stated that TREAT will be launching this month.

TREAT is designed for governance and rewards within the broader ecosystem as its developers aim to transform Shiba Inu from a meme coin into an inventive blockchain network.

However, TREAT will not be available to the US audience. The announcement included a disclaimer stating that the new meme coin is not intended for the US without providing details. This exclusion could be related to potential regulatory or licensing challenges with US exchanges.

Shiba Inu prices have been experiencing a downtrend over the past week. The launch of the TREAT token is anticipated to boost SHIB prices.

At least 13 US states, out of the total 50, are working on creating Bitcoin reserves, according to Dennis Porter. Porter is the CEO and co-founder of Satoshi Action Fund (SAC).

“I can confirm that at least 13 states are working on ‘Strategic Bitcoin Reserve’ legislation. January is going to be a record-breaking month for Bitcoin policy,” Porter tweeted on January 3.

Porter also added that a ‘tidal wave of Bitcoin policy’ is coming in 2025.

As Bitcoin becomes a strong contender to traditional assets like gold, there is rising global debate around BTC’s role as a national reserve asset. It was President-elect Donald Trump who initiated conversations around government Bitcoin reserves.

Several US lawmakers have already endorsed state Bitcoin reserves. Lawmakers from Texas, Ohio, Pennsylvania, and many others have pushed for BTC reserve legislation.

Coinbase has disclosed that the Federal Deposit Insurance Corporation (FDIC) has instructed banks to pause Bitcoin services until new guidelines are established, sparking concerns about the future of cryptocurrency services offered through traditional banking channels.

Coinbase’s Chief Legal Officer, Paul Grewal, revealed that the FDIC has sent additional letters urging banks to scale back their crypto-related operations. According to Grewal, these letters, which address everything from Bitcoin transactions to more advanced crypto services, are part of a wider effort to curb the growth of the crypto industry.

Ripple’s Chief Legal Officer, Stuart Alderoty, also emphasized that these FDIC directives seem designed to deter banks from engaging in any crypto-related business.

“Note that FDIC magically found TWO more pause letters in this search after saying before that it had complied with an earlier Court order. It’