The Bitcoin Bombshell: Will Hayes’ $250K Prediction Come True?

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🚀 The Bitcoin Bombshell: Will Hayes’ $250K Prediction Come True? 🚀

The Bitcoin Bombshell: Will Hayes’ $250K Prediction Come True?

As the markets tremble beneath the weight of Trump’s tariff bombshell, Bitcoin has dipped to a mere $83,437 – a paltry 1.41% of its former self. But fear not, dear reader, for Arthur Hayes is on the case, gazing intently upon a crucial level that could determine the fate of our beloved cryptocurrency.

With a 24-hour range that has seen Bitcoin oscillate between $88,466 and $82,182, traders are bracing themselves for the turbulence ahead. But Hayes remains steadfast in his conviction, warning that if Bitcoin can hold above $76.5K until April 15 – U.S. tax day, no less – the market may finally begin to stabilize.

Mrkt no likey “Liberation Day”, if $BTC can hold $76.5k btw now and US tax day Apr 15, then we are out of the woods. Don’t get chopped up!

— Arthur Hayes (@CryptoHayes) April 2, 2025

The Fed’s Dilemma: A Recipe for Disaster?

Hayes believes that President Trump’s pick for Treasury Secretary, Scott Bessent, will exert pressure on Fed Chair Jerome Powell to restart the money printing presses. His latest blog post, The BBC, argues that Powell will be forced to shift back to quantitative easing (QE) in order to finance the U.S. government’s growing debt. With fewer foreign buyers for U.S. Treasuries, especially from China, Hayes says the Fed and U.S. banks will have to step in.

His math, as they say, is simple: if the economy grows at 5% (3% real GDP and 2% inflation), but the government keeps borrowing 3% of GDP every year, debt piles up faster than the economy grows. Hayes warns that without lower yields or a major buyer for Treasuries, the debt-to-GDP ratio will spiral out of control.

Powell’s Conundrum: To Ease or Not to Ease?

While Powell has thus far resisted the temptation to ease, Hayes points to signs of submission. The Fed cut rates in September 2024 to help Kamala Harris during the campaign, and Powell recently hinted at slowing the reduction of the Fed’s balance sheet. Hayes argues that this is effectively Treasury QE – exactly what Bitcoin thrives on.

Plus, Bessent suggested that relaxing post-2008 banking rules could free up billions for Treasury purchases. The Fed has already slowed its roll-off of Treasuries from $25B to $5B per month – a $240B annual liquidity shift. If the Fed fully pivots to QE, Hayes expects even more cash flooding the market, driving Bitcoin higher.

The Road to Six Figures and Beyond

Hayes compares this setup to gold’s 30% surge after QE1 in 2008-2010. He argues that Bitcoin, as a non-sovereign asset, will react even more explosively to increased fiat liquidity. With BTC already rebounding from $76.5K, he believes the next stop is six figures, with $250K in sight by year-end. According to his forecast, BTC hits $110K before it ever revisits $76.5K. If the Fed turns on the money printer, Hayes says the Bitcoin rocket is ready to launch.

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2025-04-03 10:08