Arthur Hayes, the co-founder of BitMex and a prominent figure in cryptocurrency, has made a bold prediction regarding Bitcoin (BTC). He anticipates that the leading cryptocurrency could surge to $200,000 by March 2024. Hayes” insights suggest that this rise will follow a period of price stabilization until the end of this year.
In a recent blog post, Hayes expressed his belief that the Federal Reserve”s newly introduced Reserve Management Purchases (RMP) policy is a key driver behind his forecast. He compares RMP to quantitative easing (QE), suggesting it could have a similar impact on asset prices, including Bitcoin. “RMP is a new acronym that entered my Love Language dictionary on December 10th,” he noted. “I recognized it immediately and treasured it like my long-lost love, quantitative easing.”
Hayes elaborated that the continuation of money printing could lead to increased adoption of Bitcoin, positioning it as a potential replacement for traditional fiat currencies. He previously suggested that earlier money printing measures could propel Bitcoin”s price to as high as $250,000 by year-end, a target he has since adjusted to a more conservative range of $80,000 to $100,000 for the remainder of 2023.
Looking ahead to the new year, Hayes expects Bitcoin to regain momentum quickly, predicting that it will surpass $124,000 and aim for the $200,000 mark. “March will mark peak expectations for the power of the RMP to ramp asset prices, and Bitcoin will decline and form a local bottom well above $124,000,” he explained, referring to John Williams, president of the Federal Reserve Bank of New York, who plays a significant role in setting monetary policy.
Alongside his bullish outlook on Bitcoin, Hayes has shown interest in Ethena”s native token, ENA, describing it as a strategic play within the TradFi and cryptocurrency landscape. With Bitcoin currently trading around $88,000, it would need to climb approximately 127% to meet Hayes” ambitious target.
Interestingly, Hayes” optimistic analysis comes amidst reports from crypto analytics firm CryptoQuant, indicating that Bitcoin may have entered a bear market based on various market factors beyond just price, suggesting a notable decline since early October.
