Here’s When Bitcoin Will Reach Its Peak, According to Arthur Hayes

Arthur Hayes, an American entrepreneur and former CEO of the BitMEX crypto exchange, has urged crypto enthusiasts to invest now. He predicts the crypto market will continue its bullish trend throughout the year’s first quarter until mid-March.

In his Substack weekly post, “Sasa,” Hayes highlighted that President-elect Donald Trump’s takeover would catalyze the Bitcoin and crypto rally. Meanwhile, the former CEO warns that a heavy market correction will follow the “Trump Pump,” sparking a substantial capsize.

US Dollar Liquidity to Drive Crypto Market Growth

Hayes emphasized the US dollar’s liquidity, believing it will continue to drive optimism within the crypto community. Notably, his confidence is built on the recent policy shift, particularly the influence the US Federal Reserve and the Treasury Department will have on Bitcoin’s price.

Furthermore, the American businessman highlighted the inverse correlation between Bitcoin and the Fed’s Reverse Repo Facility (RRP). He cited a senior when Bitcoin bottomed in Q3 2022 as the RRP peaked. Hence, Bitcoin’s recent rebound has some roots in the repo dip.

Notably, Hayes advised that investors remain bullish, forecasting the crypto market will receive a significant capital boost. Specifically, he noted that a net investment of $612 billion in US dollar liquidity will flow into the sector by the end of March.

He also expects the Fed to continue its quantitative tightening (QT) until mid-March at a rate of $60 billion per month to shrink liquidity in the financial system.

Crypto Market Faces Correction After Q1 2025

The former CEO revealed that the bullish phase will not exceed Q1, stating that the Trump pump frenzy will fade as liquidity conditions will be tightened. He expects the bullish rally to precede a steep market correction after the first quarter.

Meanwhile, Hayes believes that the market downturn will mirror that of Bitcoin in mid-2024 after the premier asset surge early in the year. Moreover, tax season is due in mid-April, further draining TGA and creating a liquidity squeeze.

As a result, Hayes believes that the event will further drain investment sentiments. As a result, he called on “risk-takers” to turn the risk dial to DEGEN and capitalize on the bullish first quarter.

Meanwhile, Hayes remains bullish on Bitcoin in the long term. He earlier speculated that the pioneering cryptocurrency would hit $1 million per coin if Trump resumes his quantitative easing policy.