The price of Bitcoin has slumped from lifetime highs near $109,000 at the beginning of the year to a trough in the mid-80,000s, but experts are predicting that the alpha crypto could hit $250,000 by the end of this year.
In his latest post, ex-BitMEX CEO Arthur Hayes laid out a case for the sky-high price target, basing his optimism on the US Federal Reserve pivoting to quantitative easing (QE) for Treasury markets.
QE Returns, Bitcoin Skyrockets
Bitcoin’s price parabolic surge in 2025 may be fueled by the US Federal Reserve resuming de facto quantitative easing. Quantitative easing entails the central bank purchasing financial assets such as government bonds. The Fed issues new currency to cover the cost of these purchases. As a result, more money is circulating in the economy. More money means more spending, and, in turn, interest rates fall.
“Bitcoin trades solely based on the market expectation for the future supply of fiat,” BitMEX co-founder Arthur Hayes wrote in his April 1 post on Subtrack, adding:
“If my analysis of the Fed’s major pivot from QT to QE for treasuries is correct, then Bitcoin hit a local low of $76,500 last month, and now we begin the ascent to $250,000 by year-end.”
Bitcoin plunged 12% in the first quarter, with prices tumbling below the $80,000 mark at one point as U.S. President Donald Trump’s tariffs rattled Wall Street. Hayes revealed that he has been scooping up BTC and “shitcoins” at the $76,500-$80,000 range, indicating his confidence in the crypto market in 2025.
The pace of capital deployment will either increase or decrease depending on how accurate his projections are.
“I still believe Bitcoin can hit $250,000 by year-end because now that the BBC has put Powell in his place, the Fed will flood the market with dollars. That allows Xi Jinping to instruct the PBOC to stop tightening monetary conditions onshore to defend the dollar-yuan exchange rate, which increases the net quantity of yuan,” Hayes continued.
Meanwhile, Bitcoin and global risk appetite remain pressured by global tariff concerns as “Liberation Day” finally arrives, wherein President Trump is expected later today to announce sweeping reciprocal tariffs on its major trading partners, which could result in a full-blown trade war.
Bitcoin, the industry’s biggest crypto by market cap, is changing hands at $85,690, up 3.3% over the last 24 hours.
