Bitcoin Could Approach $250,000 by 2025 If Federal Reserve Shifts to Quantitative Easing, Analysts Suggest

• Bitcoin’s future looks promising as BitMEX co-founder Arthur Hayes predicts a potential surge to $250,000 by 2025, influenced by U.S. monetary policy changes.

• As the U.S. Federal Reserve signals a pivot to quantitative easing, experts are weighing the implications for Bitcoin and the broader cryptocurrency market.

• According to Hayes, “Bitcoin trades solely based on the market expectation for the future supply of fiat,” highlighting the cryptocurrency’s connection to fiscal policies.

BitMEX co-founder Arthur Hayes predicts Bitcoin could surge to $250,000 by 2025 if the Fed pivots to easing, but market sentiment remains cautious.

Arthur Hayes’ Bold Prediction for Bitcoin’s Price Surge

After reaching a local low of $76,500, Bitcoin’s trajectory could dramatically change if the U.S. Federal Reserve transitions to quantitative easing (QE). In an April 1 analysis on Substack, Arthur Hayes theorized that ongoing changes in monetary policy might provide the necessary thrust for Bitcoin to top $250,000 by year-end. Hayes posited, “If my analysis of the Fed’s major pivot from QT to QE for treasuries is correct, then we begin the ascent to $250,000.”

The Fed’s Role in Bitcoin’s Potential Growth

The Federal Reserve has already moderated its Treasury runoff cap, which may hint at an impending shift in monetary strategy. Recently, the Fed cut the runoff cap from $25 billion to $5 billion per month while maintaining a steady run-off of mortgage-backed securities (MBS) at $35 billion. Hayes emphasized that this move fosters an environment conducive to Bitcoin’s growth—“Mathematically, that keeps the Fed balance sheet constant; however, that is treasury QE.” This analysis underscores the relationship between fiat supply and Bitcoin’s price movements.

Market Sentiment and Diverging Predictions

While Hayes maintains an optimistic outlook, prevailing market sentiment appears more conservative. Traders, according to Polymarket, are less convinced about a jump to $250,000. In fact, only 9% of traders predict Bitcoin will reach this lofty figure. Approximately 60% expect a more modest price target of $110,000 by year-end 2025. This disparity reflects the uncertainty surrounding regulatory environments and global economic conditions.

Liquidity and Bitcoin’s Price Correlation

The liquidity landscape is crucial in determining Bitcoin’s trajectory. Jamie Coutts, chief crypto analyst at Real Vision, estimates that Bitcoin could reach approximately $132,000 by 2025, closely aligning its growth with the expansion of the M2 money supply. This projection suggests that while Bitcoin may experience significant upward momentum, it may be tethered to global economic conditions and liquidity metrics rather than speculative exuberance, pointing to a more cautious approach in the market.

Concerns Over Global Economic Conditions

Bitcoin’s future is not solely determined by U.S. monetary policy; global factors also play a significant role. Current fears around tariffs and upcoming announcements have placed pressure on risk assets, including Bitcoin. Stella Zlatareva, a dispatch editor at Nexo, remarked, “Long-term positioning remains intact, but near-term momentum appears tethered to unfolding macro headlines.” This illustrates how external geopolitical events could influence Bitcoin’s near-term price dynamics.

Conclusion

Overall, while the potential for Bitcoin to soar to $250,000 as forecasted by Arthur Hayes exists, the market remains cautious, mirrored by conservative trader sentiment. The interplay of U.S. monetary policies, global economic conditions, and liquidity growth will play critical roles in shaping Bitcoin’s future trajectory. Maintaining awareness of these factors is essential for investors and analysts alike as they navigate the evolving cryptocurrency landscape.