- Arthur Hayes predicts Bitcoin will reach $250,000 by end of 2025.
- Ethereum target doubled to $10,000 citing rising institutional adoption trends ahead.
- Military spending and stablecoin treasury buys add liquidity, boosting crypto asset demand.
Arthur Hayes, the co-founder of BitMEX, has made headlines once again. He has shared bold new price targets for Bitcoin and Ethereum. In his latest blog post, Hayes stated that by the close of the year 2025, Bitcoin (BTC) is likely to hit $250,000. He also forecasts that Ethereum (ETH) will move to $10000 within the same time frame.
Stablecoin Issuers Buying Treasuries May Boost Crypto Liquidity
These are major leaps above the current prices. Assuming that Hayes is correct, Bitcoin would increase by more than 111%, and Ethereum would skyrocket by more than 179% in half a year from their current prices. A lot of people are observing whether this prediction is going to materialize.
In order to justify his ambitious appeal, Hayes refers to some large tendencies. The first reason is that he feels that the spending in the military is encouraging the governments to borrow money all over the world. As an illustration, the defense budget in the U.S. just exceeded 1 trillion dollars. To afford this, governments incur even more debt rather than increasing taxes. This adds more money to the market. This increases the liquidity, and it could increase the assets, such as Bitcoin and Ethereum.
Besides, Hayes states that another factor that has led him to this prediction is inflation. When the prices increase, individuals seek secure locations where they can keep their money. Bitcoin has been perceived by many investors as a decent inflation hedge. It is scarce and digital which makes it alluring when the regular currencies depreciate in value.
Hayes also relates his prediction with issuers of stablecoins. These corporations purchase treasury bonds in the U.S., and this injects even more money into the system. The additional liquidity usually enters crypto markets. Hayes opines that this trend is going to persist until 2025.
Bitcoin May Test $90K-$95K Before Year-End Rally, Hayes Predicts
The other reason is the increased adoption of Ethereum by large organizations. According to Hayes, the Maelstrom Fund, his own family office, has a huge deposit in Ethereum. He increased his ETH target to $10,000 compared to his previous ETH target of $5,000, which indicated his greater confidence in its increase. He says that more conventional players in the finance industry are looking into Ethereum-based instruments. This implies that there is an increased possibility of more money flowing into Ethereum in the near future.
Hayes is convinced that the market will remain calm up to the Jackson Hole meeting of the U.S. Federal Reserve in August. Subsequently, he anticipates Bitcoin to reach the resistance at $90,000 to $95,000. As long as the Treasury General Account of the government remains in balance, Bitcoin might remain around 100,000. Then, Hayes anticipates a positive nudge to the second half of the year.
He also has a grand vision. As Hayes has previously stated, Bitcoin may reach one million dollars by 2028. He considers Bitcoin as digital gold. During periods of debt and inflation, he is sure that more individuals will be willing to use Bitcoin to save their fortunes.
In the meantime, Ethereum also possesses good fundamentals. It drives decentralized finance (DeFi) that can gain even greater popularity in the case of the loss of trust in fiat money. The more people start using DeFi as investors, the more they will purchase and hold ETH.
Lastly, Hayes claims that his forecasts are not guesses. They are based on the evident spending, borrowing, and investing trends. Although his ambitious Bitcoin and Ethereum price forecasts in 2025 are bound to be of interest to many who will be keen to see whether his predictions will be fulfilled.
