Arthur Hayes Predicts US Hidden QE to Boost Crypto Market

Arthur Hayes, co-founder of BitMEX, suggests the US may initiate a "hidden quantitative easing" (QE) program, potentially sparking a Bitcoin [BTC](https://holder.io/coins/btc/) rally.

The US government relies on bond issuance rather than tax hikes, leading to unsustainable spending levels.
Foreign investors are shifting from US Treasury bonds to gold due to geopolitical tensions.
Domestic savings and banks can't absorb the growing debt, leaving hedge funds as marginal buyers using leveraged repo financing.
The Treasury plans to issue $2 trillion in new debt annually. The Federal Reserve's Standing Repurchase Facility (SRF) injects short-term liquidity, which Hayes sees as "de facto QE."
Historically, [Bitcoin](https://holder.io/coins/btc/) rallies when the Fed's balance sheet expands.

Current Market Conditions

A US government shutdown and Treasury auctions have reduced liquidity, affecting crypto prices. [Bitcoin](https://holder.io/coins/btc/) trades below $104,000, raising concerns of further declines.
Hayes predicts temporary market corrections but advises preparing for volatility until the government shutdown ends.
He emphasizes that liquidity dynamics, not sentiment, drive market directions.
Hayes forecasts a strong crypto rebound once hidden QE begins, with assets like [Bitcoin](https://holder.io/coins/btc/) expected to surge as cash re-enters circulation.
He projects [Bitcoin](https://holder.io/coins/btc/) could reach $250,000 by 2025, driven by institutional demand and monetary policy.