Arthur Hayes: Fed Treasury purchases could be catalyst for BTC to hit $200K

BitMEX co-founder Arthur Hayes has projected that Bitcoin could first recover to $124,000 and then rise to $200,000 if the market begins to perceive the U.S. Federal Reserve's Treasury purchase policy (RMP) as equivalent to quantitative easing (QE). Hayes noted that while the Fed's RMP is supplying $40 billion in liquidity each month, this amount is low relative to the total U.S. dollar supply compared to 2009, making a significant credit ripple effect unlikely at current financial asset prices. He suggested that due to a misconception that RMP is weaker than QE in creating credit and uncertainty over whether the policy will continue past April of next year, Bitcoin will likely remain in a range between $80,000 and $100,000 through the end of the year. However, Hayes argued that the moment the market accepts RMP as a liquidity provision policy on par with QE, Bitcoin could experience a rapid surge. He anticipates that expectations for the RMP's effect on asset price inflation will peak in March of next year. Following this, even if Bitcoin undergoes a correction, it is likely to establish a strong support level around $124,000. Hayes emphasized that this trend will continue as long as New York Fed President John Williams does not halt the liquidity supply.