Bitcoin Rally Expected in Q1 2025 Due to Fed’s $612 Billion Liquidity Injection

Arthur Hayes, a crypto entrepreneur, forecasts that liquidity injections into the US economy after Donald Trump's inauguration may trigger a Bitcoin rally in Q1 2025.

Key Points

  • BTC surged past $100,000 but dropped to $94,543, raising questions about the anticipated "Trump rally."
  • Hayes previously warned of a potential market sell-off due to regulatory concerns under Trump’s administration.
  • The US Federal Reserve plans to inject $612 billion, which could drive BTC and digital assets higher despite regulatory setbacks.
  • Market correction expected after an initial rally; advise selling towards the end of Q1 2025.
  • Mixed opinions on BTC's future: some analysts caution against bullish momentum due to Fed interest rate delays.
  • Technical analysis indicates a possible bearish pattern, with fears of a drop to $80,000.
  • Institutional interest in BTC is growing, highlighted by record inflows to US spot Bitcoin ETFs.

BTC currently trades at $95,154, down 3.6% over the last 24 hours.

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