Arthur Hayes says Bitcoin may reach $110K before $76.5K

Arthur Hayes, co-founder of BitMEX (CRYPTO:BMEX) and chief investment officer of Maelstrom, predicts that Bitcoin (CRYPTO:BTC) could reach $110,000 before correcting to $76,500.

In a March 24 post on X, Hayes attributed the potential rally to the Federal Reserve’s shift from quantitative tightening (QT) to quantitative easing (QE), suggesting increased liquidity could drive Bitcoin higher.

“I bet $BTC hits $110K before it retests $76.5K,” he wrote.

Bitcoin has been on an upward trend for two weeks, closing above $86,000 on March 23, according to TradingView.

Some analysts believe macroeconomic conditions could support further gains beyond $110,000.

The Fed has slowed its QT program but has not fully transitioned to QE.

“QT is not ‘basically over’ on April 1st. They still have $35B/mo coming off from mortgage-backed securities,” said Benjamin Cowen, CEO of IntoTheCryptoVerse.

Despite this, expectations of easing policies have historically benefited Bitcoin.

Previous QE measures in 2020 contributed to Bitcoin’s rise from around $6,000 in March 2020 to $69,000 in November 2021.

Analysts see a similar trend emerging, with rising global liquidity and discussions about a U.S. Bitcoin strategic reserve boosting sentiment.

Emmanuel Cardozo, a market analyst at Brikken, noted that Bitcoin’s recovery above $85,000 after the Federal Open Market Committee (FOMC) meeting reflects strong investor confidence.

“BTC liquidity available in exchanges keeps dropping, leading to a supply squeeze scenario,” he said.

However, analysts also acknowledge the potential for a correction.

“A pullback to $76,500 aligns with Bitcoin’s historical volatility,” Cardozo added.

Ryan Lee, chief analyst at Bitget Research, identified $88,000 as a key resistance level to monitor.

At the time of reporting, the Bitcoin (BTC) price was $86,929.30.