Why does Arthur Hayes believe that Bitcoin will hit $200,000 in March

Source: PortaldoBitcoin Original Title: Why Arthur Hayes Believes Bitcoin Will Hit $200,000 in March Original Link: The founder of an exchange and Bitcoin billionaire, Arthur Hayes, states that BTC should soon rise to US$ 200,000 before pulling back to form a bottom above US$ 124,000.

According to Hayes, the strong price increase in Bitcoin will come from “Reserve Management Purchases” (RMP), a new operational policy introduced by the US Federal Reserve at its latest FOMC meeting, which he compared to quantitative easing (quantitative easing, QE).

“RMP is a new acronym that entered my Love Language dictionary on December 10, the day of the Fed’s most recent meeting,” Hayes wrote on his personal blog.

“Immediately, I recognized, understood the meaning, and valued it as my long-lost love, quantitative easing (QE),” he continued. "I love QE because it means money printing, and fortunately, I hold financial assets like gold, gold and silver mining stocks, and Bitcoin, which rise faster than the pace of fiat currency creation."

In Hayes’ view, if money printing continues to drive Bitcoin adoption, the cryptocurrency could, in the future, replace the “dirty fractional reserve fiat system.”

The Bitcoin billionaire has previously pointed to money printing — that is, the increase in money supply by the Fed and asset purchases — as one of the main catalysts for the market’s leading cryptocurrency. Earlier this year, he predicted that Bitcoin could rise to $250,000 by the end of the year as a result of these policies.

For the new year, however, he expects Bitcoin to take off quickly.

“As the market equates RMP with QE, Bitcoin will quickly retake US$ 124,000 and move strongly toward US$ 200,000,” Hayes wrote. “March will mark the peak of expectations regarding RMP’s power to inflate asset prices, and Bitcoin will fall and form a local bottom well above US$ 124,000, while the Federal Reserve chair keeps his dirty fingers firmly pressed on the Brrrr button [printing money].”

Token Ethena (ENA) on the radar

With the expectation of Bitcoin’s rise alongside the introduction of RMP, Hayes also shows a preference for Ethena’s native token, ENA, calling it “a bet on USD rates from TradFi versus crypto.”

Bitcoin would need to rise 127% in the coming months to reach the level Hayes predicts. Currently, the cryptocurrency is trading around US$ 87,000 — 30% below its all-time high of US$ 126,080.

Hayes’ comments were made on the same day a crypto analysis firm stated that Bitcoin appears to have entered a bear market, based on various market factors (beyond the price) indicating a significant decline since early October.