Bitcoin OG Arthur Hayes Predicts Bitcoin ‘More Likely’ To Rocket To $110,000 Amid Fed’s Policy Shift

According to BitMEX co-founder Arthur Hayes, a confluence of various macroeconomic factors is flashing bullish for Bitcoin (BTC). Hayes predicts the alpha crypto might rise to a new lifetime high of $110,000 before retracing to $76,500.

Macroeconomic Factors May Propel Bitcoin to $110,000

Arthur Hayes suggests that macroeconomic policies will catalyze Bitcoin’s next parabolic rally.

In a March 24 post on X, Hayes noted that the Federal Reserve’s expected move from quantitative tightening (QT) to quantitative easing (QE) could create the liquidity conditions that set the stage for Bitcoin’s rally to $110,000 all-time highs.

“I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries,” the chief investment officer of Maelstrom postulated.

Quantitative tightening refers to when the Federal Reserve sells assets to reduce the money supply and possibly raise interest rates, while quantitative easing is a monetary policy that involves the central bank resorting to large-scale asset purchases and injecting money into the economy to reduce interest rates and boost spending during harsh financial conditions.

Will QE Fuel Bitcoin’s Next Rally?

QE has historically been a boon for Bitcoin’s price. During the last phase of quantitative easing in 2020, for instance, Bitcoin rocketed by over 1,000% from around $6K in March 2020 to a then-historic high of $69,000 in November 2021. Hayes believes a similar setup is underway.

“What I mean is that the price is more likely to hit $110k than $76.5k next. If we hit $110k, then it’s yachtzee time, and we ain’t looking back until $250k,” Hayes clarified in a follow-up X post.

Recent U.S. government tariff announcements have sparked fears, triggering a sharp correction in risk-on assets, including Bitcoin and other crypto assets. This has led to a bearish sentiment in the cryptosphere. However, Hayes dismissed the potential negative effect of tariffs on the BTC price, asserting that their impact is temporary and unlikely to be sustainable. “And tariffs don’t matter cause ‘transitory inflation.’ JAYPOW told me so,” he opined.

The top crypto is now trading 19.2% below its all-time high of $108,786 hit on President Donald Trump’s inauguration day. However, quantitative easing by the Fed might trigger the next leg up for Bitcoin.