Hayes flips bullish on Bitcoin, predicts $110,000 rally amid Fed’s policy shift

Arthur Hayes, a co-founder of BitMEX, believes that Bitcoin (BTC) is more likely to rise to $110,000 before facing a substantial correction, shifting from his earlier viewpoint that another decline was probable until BTC reached $70,000.

In a social media update on March 24, Hayes indicated that his perspective has shifted to a bullish stance due to a potential alteration in US monetary policy.

Monetary Policy Shifts

He pointed out that the Federal Reserve’s expected transition from quantitative tightening (QT) to quantitative easing (QE) could foster the liquidity environment necessary for Bitcoin to surpass its previous all-time highs.

Hayes dismissed worries regarding inflation and escalating tariffs, suggesting that inflation is primarily transitory and asserting that monetary policy, rather than trade conflicts, will dictate Bitcoin’s future course.

He remarked:

“The Fed is transitioning from QT to QE for treasuries.”

He speculated that the actions of the US central bank might mirror previous market interventions. Furthermore, he noted that if Bitcoin regains its height of $110,000, the possibility of reaching $250,000 becomes feasible.

Hayes emphasized that he sees Bitcoin’s path to $110,000 as more likely in the near future than a drop back down to $70,000. Nevertheless, he does acknowledge the chance of a pullback to that lower level following the peak of the rally—cautioning that markets may become overextended in the case of excessive liquidity-driven growth.

According to recent data, Bitcoin was trading around $88,460 at press time, which reflects an increase of over 4% in the last 24 hours.

Building Momentum

Hayes’ optimistic outlook aligns with other bullish projections in the market, including those from 10X Research, which recently suggested that Bitcoin may have already reached its lowest point.

This firm had initially anticipated a deeper correction following Bitcoin’s decline below $95,000. However, various macroeconomic and geopolitical developments have led to a reevaluation of that stance.

10X analysts noted early signs of bottom formation, which were reinforced by President Donald Trump’s shifting comments regarding trade policy.

Trump indicated a more flexible approach on the upcoming reciprocal tariffs, alleviating worries over potential trade disputes and their implications for the markets. This change in tone was seen as a positive risk signal.

The outlook improved further after the CPI release on March 17, which showed signs of easing inflationary pressures. In response, 10X Research modified its position from cautious to moderately bullish, viewing the data as indicative of a more accommodating Federal Reserve.

The subsequent FOMC meeting confirmed these expectations, as the Fed chose to overlook short-term inflation spikes and hinted at easing policies in the future.

These macroeconomic shifts—along with stabilizing price trends and improving technical indicators—encouraged the firm to propose that Bitcoin could be on the verge of forming a sustainable bottom. Although overall trading activity remains low, 10X believes the foundation is being set for a potential recovery in the upcoming weeks.

References in this Article