Bitcoin has entered a period of relative calm, with its price oscillating between $81,000 and $89,000 over the past several sessions. This newfound stability has reassured many traders, as the odds of a sharp decline below $80,000 have diminished significantly. Selling pressure is starting to ease, buyers are gradually stepping in, and the market appears to be in an accumulation phase, which is often a precursor to another rally. Even with selling pressure easing, there’s still a risk of breakdown below $80,000 at any moment. However, dormer BitMEX CEO and renowned crypto investor Arthur Hayes recently shared a bold projection that Bitcoin will reach $110,000 before retesting the $76,500 price level. Arthur Hayes Predicts $110,000 Will Come Before Any Pullback to $76,500 As it stands, Bitcoin is closer to $75,000 than it is to $110,000, but popular crypto commentator Arthur Hayes believes the leading cryptocurrency will reach the latter before the former. A climb to $110,000 will translate to a new all-time high for Bitcoin, as its current peak is $108,786, set in January. Related Reading: Crypto Pundit Arthur Hayes Says Be Patient After Bitcoin’s 36% Crash, Reveals Possible Bottom At present, Bitcoin is trading about 20.3% below that high, and concerns about a deeper correction are valid. The possibility of a pullback to $76,500 is still a genuine concern, especially since that price sits just under this month’s local low, and it can be quickly retested before another bounce upwards. Hayes’ comments on social media platform X offered both a price target and a macroeconomic rationale. Hayes stated, “I bet $BTC hits $110k before it retests $76.5k,” clarifying that the momentum of the market and shifts in monetary policies are more likely to push the Bitcoin price up rather than another correction towards $76,500. He went further to suggest that once Bitcoin crosses $110,000, it may not look back until it starts approaching $250,000. This price target resonates with outlooks from other crypto analysts. Incoming Shifts In Monetary Policies Central to Hayes’ reasoning is the Federal Reserve’s changing stance on liquidity. He pointed out that the Fed is transitioning from quantitative tightening (QT) to a new phase of quantitative easing (QE), particularly in the Treasury markets. Although the Fed has been engaged in quantitative tightening (QT) since June 2022, there are now discussions about pausing or slowing down the balance sheet runoff. According to Reuters, some analysts predict a shift towards a more QE-like approach. Related Reading: Bitcoin Price Forecast: LTF Head And Shoulders Pattern Predicts Crash – Here’s The Target This shift could potentially inject more liquidity into the financial system, pushing assets like Bitcoin to higher price levels. Hayes also dismissed concerns about inflation, stating that the Fed Chairman appears to view it as “transitory inflation.” At the time of writing, Bitcoin is trading at $86,600, having traded at an intraday high of $88,713 in the past 24 hours. Featured image from Unsplash, chart from Tradingview.com
