Bitcoin is on track to potentially hit an all-time high of $110,000 before experiencing a notable pullback, according to several market analysts. Key factors fueling this bullish momentum include declining inflation concerns and increasing global liquidity.
The leading cryptocurrency has seen two consecutive weeks of gains, closing above $86,000 on March 23, based on TradingView data. This price action, coupled with easing inflation, could pave the way for Bitcoin to surge past the $100,000 mark, according to Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom.
In a post on X (formerly Twitter) on March 24, Hayes stated:
“I’d wager $BTC reaches $110K before revisiting $76.5K. Why? The Fed is shifting from QT to QE for treasuries. Plus, tariffs don’t matter due to ‘transitory inflation.’ JAYPOW confirmed it.”
He later added: “What I mean is that the next move is more likely toward $110K rather than $76.5K. If we break $110K, then it’s game on, and we might not look back until we hit $250K.”
The Impact of Federal Reserve Policies on Bitcoin
Quantitative tightening (QT) occurs when the U.S. Federal Reserve reduces its balance sheet by selling bonds or allowing them to mature without reinvestment. Conversely, quantitative easing (QE) involves purchasing bonds, injecting liquidity into the economy to lower interest rates and boost economic activity during challenging times.
While some suggest that QT is coming to an end, analysts point out that the Fed hasn’t fully transitioned to easing yet.
“QT isn’t ‘over’ on April 1st. There’s still $35 billion per month rolling off from mortgage-backed securities. They’ve just slowed QT from $60B per month to $40B,” said Benjamin Cowen, founder and CEO of IntoTheCryptoVerse.
Market participants are closely watching for the Fed’s potential pivot to QE, which has historically been bullish for Bitcoin. The last major QE phase in 2020 led to a surge of over 1,000% in Bitcoin’s value, climbing from around $6,000 in March 2020 to its then-record high of $69,000 by November 2021. Analysts suggest a similar pattern could be forming now.
Macro Factors Supporting a Bitcoin Surge to $110K
Bitcoin’s swift recovery above $85,000 following last week’s Federal Open Market Committee (FOMC) meeting indicates strong investor confidence, according to Emmanuel Cardozo, a market analyst at real-world asset (RWA) tokenization platform Brikken.
“The macroeconomic landscape supports a rally toward $110,000. Global liquidity is increasing, and there are discussions about a potential U.S. Bitcoin strategic reserve. With available Bitcoin liquidity on exchanges decreasing, a supply squeeze could push prices higher,” Cardozo explained.
However, he also acknowledged the possibility of a correction, noting that Bitcoin’s historical volatility often results in pullbacks triggered by profit-taking or unexpected market shifts.
Other experts agree with Hayes’ outlook. Ryan Lee, chief analyst at Bitget Research, stated: “Bitcoin’s recent close above the 21-day and 200-day moving averages suggests strong bullish momentum. However, the $88K resistance level remains a crucial barrier.”
With Bitcoin’s price action at a critical juncture, all eyes are on whether it can break through resistance and approach the highly anticipated $110,000 milestone before any major correction.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
