BitMEX Co-founder Arthur Hayes on Wednesday reiterated his year-end targets for Bitcoin and Ethereum. He predicted Bitcoin price could hit $250,000 and Ethereum price could reach $10,000 by the end of 2025 due to the different ways money is flowing into the crypto industry.
In a blog post on July 23, Hayes claimed that the most important variable to make profitable trades is understanding how the supply of fiat currencies changes. It becomes more significant when it comes to crypto, especially Bitcoin.
“Due to the gargantuan creation of fiat since early 2009 bidding for a relatively minuscule supply of Bitcoin, Bitcoin became the best-performing fiat-denominated asset in human history,” said Hayes.
Despite the global market being bullish, financial and political events, including tariffs and wars, have created panic among investors. However, Hayes believes these issues are interrelated and irrelevant to stopping Bitcoin from continuing to rally higher.
He added that President Donald Trump cannot implement his tariffs against China, as the United States depends upon China for rare earth supplies. Without rare earths, the U.S. cannot build weapons, and that is why both countries are in a status quo. Hayes claimed this wouldn’t impact the global financial market much.
The banking system has continued to extend credit to businesses in response to the Trump administration’s policies. Capital gains tax receipts have risen as rich people’s assets pump amid credit supply, with the government also posting increasing fiscal deficits. Stablecoin issuers are buying these debts, driving the crypto market.
The Trump administration is providing a favorable regulatory landscape for TradFi to participate and invest in crypto. It is supported by stablecoin assets under custody (AUC) that are invested in U.S. Treasury bills. The U.S. will issue more T-bills than Treasury notes or bonds to be purchased by stablecoin issuers.
Meanwhile, Bitcoin price was trading at $118,817, up nearly 2% in the last 24 hours. Whereas, the Ethereum price trades 1.25% higher at $3,730 at the time of writing.
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