BitMEX co-founder Arthur Hayes, Bitcoin $99,020.7 and stated that the crypto market could peak by mid-2025 and then experience a sharp correction. Hayes made this prediction based on the US Dollar liquidity environment that will emerge with Donald Trump’s transition to the White House on January 20, 2025.
Bitcoin and Crypto Market in Early 2025
In a new blog post, Arthur Hayes predicts that the crypto market will continue its rise until the first quarter of 2025. He stated that the Trump administration’s supportive policies and business-friendly environment will have an upward impact on Bitcoin and other crypto assets. However, he warned that the market could see a potential decline after peaking around March 2025.
“Sasa is an experiment in which I explain that crypto will peak in mid-March and then experience a serious correction. Until then, it’s time to dance.” –Arthur Hayes
Hayes emphasizes that US Dollar liquidity will continue to drive positive sentiment towards crypto. He believes that recent policy changes from the US Federal Reserve and Treasury Department will affect the direction of Bitcoin price.
Correction Phase After Q1 2025
Arthur Hayes expects liquidity conditions to tighten after the first quarter of 2025 and Trump’s influence to decrease. He stated that this situation could lead the market to enter the correction phase. He also stated that tax payments due in mid-April may deepen the liquidity squeeze.
“In 2024, Bitcoin reached a local peak of around $73,000 in mid-March, then moved sideways and began its multi-month decline on April 11.”
Hayes stated that he remains optimistic for Q1 2025 and that his company, Maelstorm, plans to invest in new decentralized science (DeSci) projects. Its portfolio includes tokens such as BIO, VITA, ATH, GROW, PSY, CRYO and NEURON.
Bitcoin price is currently on a strong rise, extending its weekly gain of over 10% and moving above $102,000. With the last increase, the total 24-hour liquidation reached 58 million dollars, 47 million dollars of which was due to short positions. A 4% increase in open interest indicates positive expectations among futures investors.
Arthur Hayes’ predictions may be important for crypto investors, but also highlight the need to be careful about market fluctuations. It should be noted that the liquidity injection that may occur in the first quarter of 2025 may support the crypto market, but market conditions for the future should be taken into consideration.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
