Bitcoin is also in the spotlight as Arthur Hayes, the former BitMEX CEO, defends his $250,000 price prediction.
Hayes argues that the cryptocurrency has a 170% potential increase from its current value by the year 2025, with just 33 days to go.
In an interview on the Milk Road Show, Hayes affirmed that he would not alter his prediction despite the recent market turbulence. He stressed that Bitcoin will either achieve the anticipated milestone or not, taking a detached, yet confident position.
Bitcoin exhibits bottoming.
Hayes feels the bottom of Bitcoin has come, and it will recover. He set the recent low of $80,600 as the possible bottom, and since then, the cryptocurrency has risen almost 12% to reach a high of $90,864. In the past seven months, Bitcoin has not surpassed this point and hit a low of less than $90,000 last week, which is equivalent to the losses it incurred in 2025. The falling Bitcoin sparked a brewing credit event, as Hayes, the indexes S&P 500 and Nasdaq 100 had only seen record highs.
He also cited strong backing by the US dollar liquidity, as well as a reset of the market due to the leverage washout of October 10 that purged billions out of the crypto ecosystem. According to Hayes, institutional approaches of the BlackRock iShares Bitcoin ETF made a considerable contribution to recent price changes. ETF shares were reportedly used by major players as collateral to short Bitcoin futures, and made profits when funding rates fell.
Federal Reserve policy may boost Bitcoin
Hayes believes the US monetary policy will propel the next financial surge of Bitcoin. He observed that the cuts in interest rates in recent times and the expected termination of the quantitative tightening may be a solid boost. The Federal Reserve cut rates by 25 basis points in October, and according to the market statistics, there is a high possibility of another cut as soon as December 10. Analysts also forecast that quantitative tightening will come to its end as early as 1st December, and the situation will be enhanced to improve liquidity.
Hayes feels that this development has the potential to propel Bitcoin back to its past all-time high of $126,220 and $250,000 goal. He is also confident, but he admits he can be mistaken, and he is taking a long position, whether it goes right or wrong.
Market outlook and institutional activity
Hayes emphasized that institutional participation has determined the current market trends. Big banks and investors had leveraged plans in place with Bitcoin ETFs and futures, which have probably come to an end, implying a less forceful sale. He is positive about purchasing more Bitcoin and that now is the time to have a rally.
Hayes once again repeated that the prospects of Bitcoin are bright since the liquidity situation improves and the external market conditions harmonize. He sticks to his forecast and perceives the volatility in the recent past as a part of a greater cycle that may justify the cryptocurrency having a significant upside.
