Bitcoin will surge to $110,000 due to Fed's shift to quantitative easing: BitMEX

According to BitMEX co-founder Arthur Hayes, Bitcoin could jump to $110,000 before dropping back to $76,500. He attributes this potential rally to the US Federal Reserve's expected shift from quantitative tightening to quantitative easing. This will result in an injection of liquidity into financial markets.

The financial regulator is still shrinking its balance sheet, although at a slower pace, some analysts warn. However, expectations are already prevailing in the market that the Fed will soon start to inject additional funds into the US economy. Past quantitative easing cycles fueled major Bitcoin rallies. For example, from March 2020 to November 2021, the price of the cryptocurrency rose by 1,000%, says Benjamin Cowan, CEO of IntoTheCryptoVerse.

According to Marcus Thielen, founder of 10x Research, Bitcoin has already reached its local bottom and is now recovering. In defense of his point of view, he points to the Fed's dovish stance and US President Donald Trump's measured approach to tariff impositions.