Bitcoin BTC/USD reached $86,909.48 on Monday, gaining 1.03% over 24 hours as cryptocurrency markets continue responding to shifting Federal Reserve monetary policy expectations.
What Happened: BitMEX co-founder Arthur Hayes predicted on Sunday that Bitcoin will reach $110,000 before retesting the $76,500 level. “I bet BTC hits $110K before it retests $76.5K,” Hayes wrote on X.
He attributed this forecast to the Federal Reserve shifting from quantitative tightening to quantitative easing for treasuries, adding that tariffs are irrelevant due to “transitory inflation.”
Hayes’ prediction comes as the Federal Reserve held interest rates steady at 4.25%-4.50% last Wednesday, with Chairman Jerome Powell reviving the controversial term “transitory” to describe potential inflationary effects from new tariffs.
The Fed also announced plans to slow its quantitative tightening program beginning in April, reducing Treasury securities redemption caps from $25 billion to $5 billion monthly.
I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries. And tariffs don't matter cause "transitory inflation". JAYPOW told me so. I'll expound on that in my next essay, that's the TLDR for your TikTok peanut brain.
— Arthur Hayes (@CryptoHayes) March 24, 2025
See Also: Bitcoin, Ethereum, Dogecoin Rise As White House Official Hints At Gold-Powered BTC Purchases: Analyst Says Watch Out For These Key BTC Levels
Why It Matters: This policy shift occurs amid growing stagflation concerns. The Fed’s latest projections show Gross Domestic Product growth falling to 1.7% for 2025 (down from December’s 2.1% estimate), while core PCE inflation expectations rose from 2.5% to 2.8%.
“It’s simply too early to say with any degree of confidence that the inflationary effects will be transitory,” criticized Allianz chief economic adviser Mohamed El-Erian, recalling the Fed’s 2022 misstep when it initially dismissed persistent inflation.
Despite economist warnings, markets rallied following Powell’s statements. The S&P 500 index tracked by SPDR S&P 500 SPY closed 0.08% higher on Friday, while Bitcoin surged past $85,000. Gold also extended record highs and steadied at $3,020 per ounce.
Read Next:
- Billionaire Investor Mark Cuban Questions Fate Of Amazon Amid Trump’s Reciprocal Tariffs: ‘It’s About How You Use Them’
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.