Hayes flips bullish with Bitcoin and predicts $110,000 rally amid the Fed policy shift

Bitmex co-founder Arthur Hayes said Bitcoin (BTC) is likely to rise to $110,000 before experiencing a major fix, pivoting from his previous stance that there could be more downsides until BTC reaches $70,000.

Hayes said in a social media post on March 24 that his views have turned bullish over due to potential changes in US monetary policy.

Monetary policy

Hayes noted that the expected move from quantitative tightening (QT) to quantitative easing (QE) in the Federal Reserve could create the liquidity conditions needed to help Bitcoin break through its previous record highs.

Hayes downplays concerns about inflation and rising tariffs, claiming that inflation is primarily temporary and that monetary policy, rather than trade tension, shapes the trajectory of Bitcoin.

Hayes wrote:

“The Fed is pivoting from QT to QE for the Treasury Department.”

He suggested that the next action of the US Central Bank could be similar to the measures taken during previous market interventions. Hayes added that once Bitcoin regains its $110,000 high, it will also show up at an extreme of up to $250,000.

Hayes revealed that he considers Bitcoin to be more likely to be promoted to $110,000 than to experience another decline to the $70,000 level in the short term. But he still sees the possibility of pullbacks to that low level after the rally peaks. It warns that the market could grow excessively if a frenzied liquidity-driven growth occurs.

According to data from Cryptoslate, Bitcoin has traded at around $88,460 as of press time, up over 4% over the last 24 hours.

Building momentum

Hayes’ Outlook coincides with other bull market calls, including a 10x survey.

The company initially hoped for a deeper fix after Bitcoin fell below $95,000. However, a series of macroeconomic and geopolitical developments have encouraged reassessment.

Ten times analysts noted early signs of bottom formation, reinforced by changing President Donald Trump’s rhetoric on trade policy.

Trump has given him a more flexible stance on the April 2nd mutual tariffs, easing concerns about potential trade tensions and market impacts. This softening of tone was interpreted as a positive risk signal.

After the release of CPI on March 17th, the outlook has become more favorable and has shown a easing inflationary pressure. In response, the 10x study adjusted its stance from careful to moderate bullish, looking at data in favor of the more kinder Federal Reserve system.

Subsequent FOMC meetings confirmed expectations, suggesting future policy relaxation, the Fed chose to look beyond the rise in short-term inflation.

These macro shifts, combined with stabilizing price action and improving technical indicators, suggested that Bitcoin could be in the early stages of forming a durable bottom. While overall trading activity remains curtailed, 10x claims that the foundation is laid for a potential recovery in the coming weeks.

It is mentioned in this article