
Arthur Hayes predicts big bitcoin rally as he believes Fed rate cuts on April 1 will fuel BTCโs rise.
Fed eases QT, cutting Treasury sales cap from $25B to $5B, boosting confidence.
M2 Money supply growth may double BTCโs price as a 10% liquidity boost fuels gains.
Bitcoin is on the rise again, climbing to $86,000 after the latest Federal Open Market Committee (FOMC) meeting. But according to former BitMEX CEO Arthur Hayes, this is just the beginning. He predicts the Federal Reserve will cut interest rates on April 1, which could fuel an even bigger rally.
Could Bitcoin hit $90,000 next?
April 1: A Key Date for Bitcoin
Arthur Hayes believes Bitcoinโs recent drop to $77,000 was the bottom. He expects April 1 to be a turning point when the Fed could end its policy of quantitative tightening (QT). If that happens, more money could enter the market, pushing Bitcoin higher.
Hayes also warns that if the U.S. stock market keeps falling, the Fed may step in with policies that indirectly help Bitcoin. His advice? โStay nimble and cashed upโ because big market moves could be ahead.
Fed Signals a Change – Why It Matters for BTC
For months, traders have speculated that the Fed would ease its tightening policies. The latest FOMC minutes confirmed this, showing that the Fed will cut its monthly Treasury sales limit from $25 billion to $5 billion.
Bitcoin reacted immediately. After the FOMC meeting, BTC surged 3.5% to $87,000 and is now testing key resistance levels. Crypto analyst IncomeSharks pointed out that if Bitcoin closes above $86,351, it could break out into a major rally.
Another factor driving Bitcoinโs price is the increasing M2 money supply, which has a strong connection to BTCโs movements. Experts say that even a small 10% increase in liquidity could more than double Bitcoinโs price. If this trend continues, BTC could reach $90,000 – or higher – in April.
Not Everyone Agrees
While Hayes is confident that QT will end by April 1, not all analysts are on board. Market expert Benjamin Cowen argues that QT is still in effect, with the Fed reducing its balance sheet by $35 billion per month.
If the Fed does cut interest rates as Hayes predicts, Bitcoin could see a massive surge. With April fast approaching, all eyes are on the Fedโs next move – one that could send BTC soaring past $90,000.
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Bitcoin seems to have only one direction in mind – straight up. Letโs see if the Fed fuels the fire.
FAQs
As per Coinpediaโs BTC price prediction, 1 BTC could peak at $169,046 this year if the bullish sentiment sustains.
With increased adoption, the price of 1 Bitcoin could reach a height of $610,646 in 2030.
As per our latest BTC price analysis, the Bitcoin could reach a maximum price of $5,148,828.