Arthur Hayes expects the cryptocurrency market to peak by March 2025, driven by dollar liquidity

Arthur Hayes, former CEO of BitMEX and now Chief Investment Officer of Maelstrom, has revised his outlook on the cryptocurrency market, Prediction It peaked in March 2025. Hayes had initially predicted that the market would see a major decline, or “Trump dump,” once the Donald Trump administration took office. He predicted that investors will soon realize that the new president’s pro-crypto promises, including plans to create a Bitcoin reserve and create a cryptocurrency-friendly environment, may be difficult to implement in the short term.

However, Hayes now believes that the expected “Trump dump” has already occurred. It is believed that the market correction likely occurred between mid-December and the end of the year. Despite this, Hayes notes that continued liquidity in the US economy will continue to push the market higher. Bitcoin’s price was already up 5.5% in early January, and its market cap has risen more than 10% to $2 trillion.

The driving factor behind Hayes’ revised forecast is the expected influx of dollar liquidity in the first quarter of 2025. He estimates that US Treasury spending and a decline in the Federal Reserve’s reverse repo facility could pump up to $612 billion into the financial system by 2020. End of March . This liquidity could fuel further bullish momentum in the cryptocurrency market, offsetting potential disappointment surrounding Trump’s cryptocurrency policies.

Hayes believes that Bitcoin and other crypto assets will continue to perform well in the short term. He advises investors in his family office, Maelstrom, to take more risks, recommending that they adopt a “degen” approach and invest in decentralized scientific tokens (DeSci). Hayes revealed that Maelstrom has already obtained tokens such as BIO, VITA, and NEURON.

Although Hayes remains positive about the near-term outlook for the cryptocurrency market, he warns that potential risks remain for the rest of 2025. These risks include debt ceiling negotiations, tax deadlines, and potential changes in monetary policy by a bank. Japan or China. However, Hayes asserts that the favorable liquidity environment will continue to push the market higher until March 2025.

Looking to the future, experts expect Bitcoin to reach a value of between $150,000 and $250,000 later in the year. Hayes encourages risk-takers to be bold in their investment decisions while monitoring market dynamics as the year unfolds.