Arthur Hayes: "Bitcoin will reach $250,000 with Quantitative Easing"

If the Federal Reserve (Fed) initiates Quantitative Easing (QE), it is argued that the price of Bitcoin (BTC) could rise to $250,000.

According to Cointelegraph on the 2nd (local time), Arthur Hayes, co-founder of BitMEX, stated, "The price of Bitcoin moves according to the market's expectations of how much money will be released in the future," and predicted, "If the Fed shifts to a quantitative easing stance as I expect, Bitcoin could reach $250,000 by the end of the year." He explained that the Fed's accommodative monetary policies, such as bond purchases, interest rate cuts, and liquidity supply to stimulate consumption, will positively impact Bitcoin's rise.

Hayes particularly focused on quantitative easing related to bonds. Previously, the Fed significantly lowered the cap on its bond holdings reduction from $25 billion to $5 billion per month starting April 1 (local time), while maintaining the mortgage-backed securities (MBS) reduction at $35 billion per month. Jerome Powell, the Fed Chair, mentioned that excess principal repayments could be reinvested in bonds, which Hayes interpreted as de facto quantitative easing (QE) through bonds. He emphasized, "If such measures are officially announced, Bitcoin will soar."

He continued, "There is a high possibility that the Fed will supply a large amount of dollars to the market. Bitcoin will reach $250,000 by the end of the year," and stated, "I am continuously buying Bitcoin in the range of $76,500 to $90,000."