- Arthur Hayes tells DL News that Trump’s nationalism will drive Bitcoin to $250,000 by the end of 2025.
- The inbound president’s policies will cause the dollar to drop in value.
- Hayes expects all countries to devalue their currencies this year.
It’s every country for itself in 2025 — and they’re bringing the printer.
At least that’s what Arthur Hayes predicts.
The overarching theme for 2025 is an acceleration of money printing due to nationalistic economic policies, the chief investment officer for Maelstrom fund told DL News.
“Every nation will put their citizens first, and print money in an attempt to smooth out volatility,” he said.
This will set off a chain reaction of currency devaluation, which Hayes reckons will push investors to seek refuge in alternative assets such as gold, and cryptocurrencies.
“Bitcoin reaches $250,000 by the end of the year,” he told DL News.
Hayes is the latest market watcher to project Donald Trump’s presidency to pump the value of Bitcoin. The president-elect has promised to introduce crypto-friendly policies that the industry expects will catapult the asset class.
Bucking the dollar
Trump will be more aggressive in his monetary policy than other country leaders, Hayes said.
“Trump will massively devalue the dollar versus gold,” he told DL News.
This scenario would counter the greenback’s strength post election — it soared to a two-year high — along with hawkish moves from the Federal Reserve in late December.
The Fed has indicated it plans to maintain higher rates and a restrained monetary policy, directly opposing the type of situation Hayes predicts.
Some investors say there is an unusual situation pairing the dollar with Bitcoin with both assets looking bullish right now. Usually, the crypto soars when the dollar devalues and vice-versa.
Bitcoin’s roadmap
This week, Hayes outlined his roadmap for Bitcoin in 2025.
“It will be time to sell in the late stages of the first quarter” and wait until “positive fiat liquidity conditions” return in the third quarter,” he wrote in his latest blog post on Tuesday.
Hayes expects the dollar liquidity to increase in early 2025, as the US Treasury borrows capital to fund the government. During those times, Bitcoin and crypto prices also tend to rise.
Analysts from Tyr Capital, Standard Chartered, and Bernstein project that Bitcoin will hit $200,000 by the end of the year.
Pedro Solimano is a Markets Correspondent at DL News. Got a tip? Email him at psolimano@dlnews.com.