Bitcoin Could reach $250,000 by Year’s End, Analyst Predicts

Bitcoin could surge to over $250,000 by the end of the year, fueled by ‌expectations of increased monetary easing,‌ according to one market observer.

Arthur Hayes, Bitmex co-founder⁢ and ‍chief investment officer of Maelstrom, suggests that a shift toward quantitative easing (QE) could ⁣be a significant catalyst for Bitcoin’s price appreciation. quantitative easing involves‌ a central bank, like the⁤ Federal Reserve, purchasing bonds to inject liquidity ⁣into the economy, ‍lower interest rates, and stimulate ‌spending during periods of financial ⁢stress.

“Bitcoin is​ traded only according to the market expectations for the future supply ​of legal money,” Hayes wrote in an April 1 Substack post.

“If the Fed pivots from quantitative tightening (QT) to quantitative easing (QE) for government bonds, Bitcoin‌ took $76,500 last month, and now we will start up to $250,000 by the end of the‌ year.”

The Federal⁣ Reserve has reportedly reduced‍ its Treasury bond repayment limit from $2.5 billion to $5.5 billion, effective April 1, while maintaining the mortgage repayment limit at $35 billion.

According to Reuters, Federal Reserve Chairman Jerome Powell indicated that the Fed‌ could⁣ proceed without fully replacing maturing ‍Housing mortgage securities (MBS), with ​excess repayments potentially reinvested in Treasury bonds.

Hayes added, “Mathematically, this keeps the Fed’s balance sheet⁣ constant, but ⁢it’s a quantitative easing of government ‍bonds. If this​ is officially announced, Bitcoin will soar.”

Alternative Price Predictions

Other analysts are considering more ‍conservative Bitcoin price targets, basing their projections on Bitcoin’s correlation with the global liquidity index.

Jamie Coutts, chief​ cryptocurrency analyst ⁤of real Vision, estimates that increased money‌ supply could push​ Bitcoin’s price to over​ $132,000 before the end of 2025.

Analyst Remains Bullish

Hayes has mentioned purchasing Bitcoin and altcoins in the $76,500 to $90,000 range,expressing confidence in the cryptocurrency market for⁢ the remainder of 2025. He ⁤suggests that his funding rate ⁤will fluctuate based on the accuracy ‍of his predictions.

“I still believe Bitcoin can reach $250,000 by the end of the year.Now, the BBC has put Powell in place, so the Fed will spend dollars into the market,” hayes stated.

“This allows xi Jinping⁣ to instruct the Chinese People’s Bank (PBOC) to stop monetary⁤ tightening in⁤ Korea to defend the dollar-yuan exchange rate, ​and the total⁢ amount of yuan increases.”

While optimistic forecasts exist, many market participants anticipate Bitcoin prices to peak at lower levels by the end of 2025.

According⁤ to ​Polymarket, a decentralized prediction‌ market, only 9% of traders expect Bitcoin⁣ to reach $250,000, while 60% believe it⁣ will reach $110,000 by 2025.

Bitcoin and global risk assets face potential headwinds ⁤from​ a scheduled tariff proclamation⁤ by U.S. President Donald Trump.

“The long-term position remains the same, ⁣but the short-term momentum is likely⁣ to be affected by the​ ongoing macroeconomic news,” one analyst noted.