The Fed’s Money-Printing Shift and Bitcoin’s Price Surge

BitMEX co-founder Arthur Hayes predicts that Bitcoin will exceed $110,000 before dipping to $76,500 as the central bank transitions from tightening to easing, potentially injecting liquidity into the market and boosting the digital asset’s price.

> “I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries,” Hayes wrote on X on Sunday.

Hayes dismisses the potential negative impact of tariffs on Bitcoin’s price, believing that inflation is ‘transitory’.

Markus Thielen, founder of 10X Research, also anticipates a Bitcoin rebound. In a report from March 23, he suggested that Bitcoin might have hit its lowest point during the recent downturn, setting the stage for recovery.

According to Thielen, the Fed’s dovish attitude on inflation and Trump’s flexible approach to tariffs could help alleviate market concerns and boost investor confidence.

> “The Fed signaled it might look past short-term inflationary pressures, laying the groundwork for potential future easing,” he stated.

Thielen reported that a relaxed political climate and optimistic economic forecasts have shifted Bitcoin’s indicators to a bullish stance. He noted factors such as Bitcoin holders’ behavior and ETF performance, suggesting Bitcoin is unlikely to enter a prolonged bear market due to large holders likely being long-term investors.

Additionally, inflows into US-based spot Bitcoin ETFs are considered a positive sign, indicating diminished selling pressure from arbitrage-focused investors.

Data from Farside Investors shows US-listed spot Bitcoin ETFs had around $744 million in net inflows last week, with BlackRock alone attracting about $537 million in new investments.

While the outlook is bullish, Thielen recognizes the absence of a “clear catalyst” for an immediate parabolic rally.

At press time, Bitcoin traded at approximately $87,000, reflecting a 3.5% increase in the last 24 hours, according to CoinGecko, with the total crypto market cap slightly rising to $2.9 trillion.