Bitcoin could rise to over $250,000 by the end of the year, and we hope that an increase in Fiat supply will continue to be a key catalyst for the world’s first cryptocurrency.
The Bitcoin (BTC) 2025 Price Rally could be boosted by pivoting into quantitative easing (QE) in the US Federal Reserve.
“Bitcoin will be traded based on market expectations for Fiat’s future supply,” according to Arthur Hayes, co-founder of Maelstrom and chief investment officer.
Hayes wrote in the Sackak Post on April 1:
“If my analysis of the Fed’s major Treasury pivot from QT to QE is correct, Bitcoin hits the local low of $76,500 last month, and this time begins to rise to $250,000 per year.”
The Fed reduced the Treasury’s outflow cap from $25 billion to $5 billion a month on April 1, stabilizing mortgage-backed securities (MBS) outflows to $35 billion.
According to a comment from Federal Reserve Chair Jerome Powell issued by Reuters, the Fed could roll off without the MBS exchange, and excessive principal payments could be reinvested into the finances.
“Mathematically, it keeps the Fed’s balance sheet constant. But it’s the Treasury. Bitcoin screams high when it’s officially announced,” Hayes added.
Related: Bitcoin’s Next Catalyst: 36T $36T US Debt Cap End of Suspension
Other analysts outperform the more conservative Bitcoin prices based on the correlation between BTC and the global liquidity index.
BTC was projected to reach $132,000 based on growth in M2 money supply. Source: Jamie Coutts
Estimates from Real Vision’s chief Crypto analyst Jamie Coutts show that the increase in monetary supply could potentially exceed Bitcoin’s price of $132,000 by the end of 2025.
Related: Bitcoin hits $110K before $76.5K “More Possible” – Arthur Hayes
The Fed “fulls the market with dollars”
Hayes presents his conviction in the crypto market for the rest of 2025.
“I believe Bitcoin can hit $250,000 per year end because the BBC replaced Powell.
“This will allow Xi Jinping to stop the tightening of land-based financial conditions to PBOC and protect the exchange rate of dollar Yuan, which increases Yuan’s net amount.”
Despite optimistic predictions, many market participants are betting on the low top Bitcoin prices at the end of 2025.
Source: Polymarket
According to Polymarket, the largest diversified forecasting market, only 9% are betting on Bitcoin, 60% expect Bitcoin to reach $110,000 in 2025.
Still, Bitcoin and global risk appetite remain under pressure from the fear of global tariffs ahead of President Donald Trump’s upcoming tariff announcements scheduled for April 2.
“While the long term positioning remains unharmed, the short term momentum appears to be linked to rolling out macro headlines,” Stella Zlatareva, temporary editor of the digital asset investment platform, told Cointelegraph.
https://www.youtube.com/watch?v=ESB74SYK828
Magazine: Hiz’s Bitcoin odds in June, Sol’s $485 million leak, etc.: Hodler’s Digest, March 2-8
