In a bold prediction, Arthur Hayes, co-founder of BitMex, asserts that Bitcoin may surge to $200,000 by March 2024. This potential spike is largely attributed to the Federal Reserve“s recent implementation of its “Reserve Management Purchases” (RMP) policy, which Hayes compares to traditional quantitative easing (QE).
In his latest blog post, Hayes expressed enthusiasm for the RMP, stating, “I immediately recognized it, understood its meaning, and treasured it like my long-lost love, quantitative easing.” He elaborated on how QE facilitates money printing, benefiting assets like Bitcoin, which tend to appreciate at a rate that outpaces fiat currency creation.
Hayes argues that persistent money printing could further enhance Bitcoin”s adoption, potentially positioning it as a viable alternative to the conventional fiat fractional reserve banking system. Earlier this year, he had projected that Bitcoin could reach $250,000 by the end of the year, a prediction he has since revised. Now, he anticipates a trading range between $80,000 and $100,000 for Bitcoin as 2023 concludes.
Looking ahead to 2024, Hayes expects a rapid ascent for Bitcoin. He remarked, “As the market equates RMP to QE, Bitcoin will quickly retake $124,000 and punch quickly towards $200,000.” He indicated that March would likely witness peak market expectations regarding the RMP”s influence on asset prices, projecting that Bitcoin would subsequently dip but maintain a floor above $124,000.
Hayes also expressed interest in Ethena“s native token, ENA, describing it as a strategic play between traditional finance and cryptocurrency interest rates. Currently, Bitcoin trades around $88,000, which is approximately 30% below its all-time high of $126,080.
These predictions come amidst contrasting market sentiment, as analytics firm CryptoQuant has suggested that Bitcoin might have entered a bear market, based on various indicators signaling a notable decline since early October.
