Arthur Hayes Believes Bitcoin Could Skyrocket to $250,000 — How Inflation, Fed Policy, and Market Liquidity Will Push BTC to the Moon!

The renowned crypto analyst and BitMEX’s previous CEO, Arthur Hayes, has changed his Bitcoin price prediction. Earlier on January 27, he had predicted that Bitcoin would likely hit $75,000 or even $70,000. “An ugly start of the week If we get into that range, it will be violent.” Based on this projection, the price of Bitcoin would then rise to $250,000 because of a financial crisis. However, based on his new Bitcoin price projection, the coin will not be falling to the $75,000 price.

Arthur Hayes Predicts $110K Bitcoin Surge! $250K in Sight

Arthur Hayes posted his new Bitcoin price prediction in an X post. He also alluded that there would be an essay that would go into more detail about this prediction. His new BTC price projection presents a bullish view, as he believes Bitcoin will soon climb to the $110,000 point. He also mentioned that a retest of the $76,500 support is also possible. However, in his opinion, the fundamental indicators all point to a BTC price surge. He has again highlighted the $250,000 price as the long-term target for the number one cryptocurrency.

I bet $BTC hits $110k before it retests $76.5k.

Y? The Fed is going from QT to QE for treasuries. And tariffs don’t matter cause “transitory inflation”. JAYPOW told me so.

I’ll expound on that in my next essay, that’s the TLDR for your TikTok peanut brain.

— Arthur Hayes (@CryptoHayes) March 24, 2025

Hayes’ BTC price projection was also backed by the fundamental causes for a Bitcoin price surge. Based on his opinion, the US Federal Reserve will likely change its approach from Tightening to Easing. The easing process involves depositing capital in bonds to increase the market liquidity. As such, more capital will be circulating in the market, which will, in turn, create more demand for risk assets. This way the price of cryptocurrencies which include Bitcoin will start to rise as more capital is brought in. 

BTC Breaks $88K as Tariffs Turn Soft: Hayes Stands Bullish

Although there are still some macroeconomic factors that could create a bearish sentiment, Hayes remained firm on his bullish predictions. One of the most important macroeconomic factors is the ongoing development of the US trade Tariffs. However, based on his Bitcoin price prediction, tariffs are not long-term obstacles and will eventually disappear. His prediction might have come true already, as over the weekend, there were discussions about Trump softening his tariffs. As such, Bitcoin reacted positively to this change and climbed from trading near $86,000 to over $88,713. 

Inflation Profits? BTC Might Thrive Amid Dollar Devaluation

Arthur Hayes’s remarks about the temporary nature of Trump’s financial turmoil mirror the speech from the Fed’s chair, Jerome Powell. He also called the ongoing inflation temporary and general prosperity. However, based on another scenario, some believe that even with increased inflation, BTC will continue to grow in value. This is because if the Dollar devaluation picks up speed, some may use crypto and BTC as a hedge against inflation. Bitcoin’s increasing scarcity will also play a role in this scenario, as there are only 2.16 million BTC remaining to be mined.

Investors Are Borrowing Big for BTC – Boom or Bust Ahead?

There are also some fundamental Bullish developments that will support a Bitcoin price surge in the near future. Based on the report from CryptoQuant, BTC has recorded a $32 billion open value. This indicator represents the total value of active derivatives contracts, and an increase in it means more leveraged BTC positions. As such, investors now believe that BTC will surge soon and put borrowed money in hopes of a big profit. However, as CryptoQuant points out, when leverages increase, any drop in price will likely result in serious losses.