Arthur Hayes, the former CEO of BitMEX and current Chief Investment Officer at Maelstrom, has adjusted his view on the cryptocurrency market, predicting a bullish first quarter in 2025. Previously cautioning about a possible market adjustment around Donald Trump’s inauguration, Hayes now anticipates that ample dollar liquidity will drive a prolonged “Trump pump” uptrend lasting until mid to late March.
In his recent blog entry, Hayes explained that shifts in his viewpoint stemmed from the cash flow patterns within the American economy. “I continue to think this could be a possible downside pressure for the market in the near future,” he pointed out. “However, I must also consider the surge of dollar liquidity as a counterweight.
Trump, set to take office in two weeks, is viewed as a supporter of cryptocurrency. The change at the head of the Securities and Exchange Commission (SEC), replacing Gary Gensler with Paul Atkins, who is known for his pro-crypto stance, has fueled optimism among investors. Market participants are also eagerly anticipating significant legislative moves, such as regulations for stablecoins and laws that allow banks to directly hold cryptocurrencies.
Bitcoin Recovery and Dollar Liquidity Dynamics
According to Hayes, there might have been a “Trump dump” for Bitcoin from mid-December 2024 to the end of the year. During this timeframe, the price of BTC dipped from a peak of $108,268 on December 17 down to as low as $92,000. However, Bitcoin has shown a strong recovery lately, increasing in value by 5.5% during the first week of the year. Its market capitalization also experienced a significant growth, exceeding $2 trillion with an increase of over 10%.
According to Hayes’ predictions, there will be approximately $237 billion flowing into the markets during Q1. This surge is expected due to the Federal Reserve reducing its Reverse Repo Facility (RRP) and the U.S. Treasury using funds from its general account to handle the debt ceiling issue. Hayes further believes that by the end of March, this liquidity could potentially reach $612 billion, creating a supportive environment for the crypto market.
Even though there are several favorable aspects, Hayes cautioned about possible challenges ahead in the year, like discussions on the debt ceiling and tax due dates in April. Additionally, he emphasized potential external threats, such as modifications to monetary policy by the Bank of Japan and the yuan credit creation pace set by China.
It’s been disclosed that Maelstrom is now focusing on Decentralized Science (DeSci) tokens, a new field using blockchain technology to streamline scientific research. As reported by their Chief Investment Officer, the family office has recently procured tokens like BIO, VITA, and NEURON in this sector.
Hayes’ recommendation for “degen” investments signifies the ongoing changes within the sector. Numerous crypto analysts anticipate Bitcoin’s value to range from $150,000 to $250,000 by the year 2025. At present, Bitcoin is being traded at approximately $100,739 and has experienced a 50% increase in its daily trading volume.
Read More
- ZK PREDICTION. ZK cryptocurrency
- ARB PREDICTION. ARB cryptocurrency
- XRD PREDICTION. XRD cryptocurrency
- W PREDICTION. W cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- DGB PREDICTION. DGB cryptocurrency
- Matter Labs Drops All ‘ZK’ Trademark Applications: Details
- Vishnu Manchu finally ENDS THE SILENCE over ongoing family feud between Manchu Manoj and Mohan Babu
- FLOKI PREDICTION. FLOKI cryptocurrency
- CRV PREDICTION. CRV cryptocurrency
2025-01-07 18:48