Featured image from Unsplash, Chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"
In a recent blog post, serial crypto entrepreneur and commentator Arthur Hayes predicted that fresh liquidity injections into the US economy following President-elect Donald Trump\u2019s inauguration could spur a Bitcoin (BTC) rally in Q1 2025. Money Printing To Propel Bitcoin? Despite surging past $100,000 on January 6, BTC faced a sharp decline to as low as $94,543 earlier today, casting doubt on the so-called \u201cTrump rally\u201d that many expected to last until Trump\u2019s inauguration on January 20. Related Reading: Bitcoin May Surge To $200,000 By Mid-2025 Amid \u2018Mild\u2019 Price Pullbacks: Report Recent market action aligns with Hayes\u2019 December forecast, in which he warned of a potential \u201charrowing dump\u201d in the cryptocurrency market around Trump\u2019s inauguration. At the time, Hayes attributed this predicted sell-off to perceived regulatory disappointments from the incoming Trump administration. However, in his latest post, Hayes suggested that the US Federal Reserve\u2019s (Fed) plan to inject $612 billion of fresh liquidity into the economy could make up for the lack of regulatory progress and ignite new bullish momentum for BTC. The BitMex co-founder remarked: A letdown by team Trump on his proposed pro-crypto and pro-business legislation can be covered by an extremely positive dollar liquidity environment, an increase of up to $612 billion in the first quarter. Hayes explained that the Fed is expected to ramp up money printing after Trump\u2019s inauguration, likely driving BTC and other digital assets to a local top before a subsequent pullback. He added that market disappointment over lagging crypto regulation under Trump\u2019s administration would exacerbate the correction. The crypto entrepreneur advised selling towards the end of Q1 2025 and waiting for favorable liquidity conditions to return in Q3 2025. Once fresh liquidity enters the market, Hayes suggested it would be time for risk-seeking investors to \u201cturn the risk dial to degen.\u201d Opinion Split On BTC Price Action While Hayes anticipates a BTC rally later this quarter, other analysts and market commentators remain cautious. For instance, a recent report by 10x Research noted that the Fed\u2019s delay in cutting interest rates could dampen BTC\u2019s bullish momentum. Similarly, technical analysis suggests that BTC may be forming a bearish head-and-shoulders pattern on the weekly chart, raising fears of a drawdown to as low as $80,000. Yesterday\u2019s failure to decisively reclaim the $100,000 price level has further unsettled the bulls. On the other hand, the CEO of Bitcoin mining firm MARA recently advocated a long-term \u201cinvest and forget\u201d strategy for BTC. He suggested that a US strategic Bitcoin reserve could spark a global race among nations to accumulate BTC, driving up its price. Institutional interest in BTC is already on the rise, as evident from record inflows received by US spot Bitcoin exchange-traded funds (ETF). At press time, BTC trades at $95,154, down 3.6% in the past 24 hours. Featured image from Unsplash, Chart from TradingView.com<\/p>\n","protected":false},"author":619,"featured_media":672808,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[230,428,1119,78790,6664,1558,8480,7918,2766,93883],"class_list":["post-672803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-arthur-hayes","tag-bitcoin","tag-btc","tag-btcusdt","tag-crypto","tag-cryptocurrency","tag-donald-trump","tag-federal-reserve","tag-liquidity","tag-q1-2025"],"acf":[],"yoast_head":"\n
Bitcoin May Rally In Q1 2025 Driven By US Fed\u2019s Money Printing, Predicts Arthur Hayes<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n