Bitcoin price prediction from prominent crypto investor Arthur Hayes sparks major attention. The BitMEX co-founder claims the Federal Reserve launched secret money printing. According to @Crypton3wslive on X, Hayes believes Bitcoin will pump as Fed turns money printers back on.
Hayes serves as Chief Investment Officer of Maelstrom fund. He argues the central bank secretly prints money through Reserve Management Purchases. The Fed describes RMP as technical liquidity management. Hayes sees it differently.
Fed Launches $40 Billion Monthly Treasury Program
The program purchases approximately $40 billion in short-term Treasury bonds monthly. Money market funds sell these bonds to the Fed. They recycle fresh cash into longer-dated Treasuries. Hayes contends this creates identical inflationary effects as traditional quantitative easing.
The Fed announced RMP during December 10 Federal Open Market Committee meeting. Chair Jerome Powell framed purchases as necessary for maintaining adequate bank reserves. He separated this from monetary policy stance.
Hayes published his analysis in essay titled "Love Language" on December 19. He describes RMP as thinly disguised method. The Fed finances government spending while avoiding political stigma.
Markets Will Recognize Money Printing By Early 2026
The mechanism enables unlimited balance sheet expansion with minimal oversight. Hayes colorfully termed this approach resembling endless liquidity creation. Unlike previous QE programs, RMP has no specific upper limit.
The Fed stated purchases could remain elevated for several months. This eases pressures in money markets around seasonal fluctuations. Hayes expects the program will continue injecting new money into markets.
Institutions receiving this liquidity can buy more bonds. They can extend loans to hedge funds. The money ultimately finances government spending throughout economy. This drives up asset prices from stocks to cryptocurrencies.
Bitcoin Trapped Until Investors Wake Up
The BitMEX co-founder warns most investors currently believe Fed's narrative. This perception keeps Bitcoin trading sideways between $80,000 and $100,000. Hayes Bitcoin price prediction shifts dramatically in early 2026.
Once markets recognize RMP functions identically to quantitative easing, Bitcoin will quickly reclaim $124,000. The cryptocurrency will accelerate toward $200,000. According to @CryptosR_Us on X, Hayes believes investors will finally catch on.
The timeline places March 2026 as peak for RMP's asset price inflation capability. Hayes Bitcoin price prediction expects $200,000 during this period. Institutional FOMO and ETF inflows will drive demand. Widespread recognition that Fed underwrites government spending becomes clear.
Post-Peak Correction Remains Above Key Levels
After March, Hayes anticipates Bitcoin will pull back temporarily. The cryptocurrency will form local bottom well above $124,000. The correction would be strategic rather than signaling cycle top.
Hayes announced portfolio shift from Ethereum into high-quality DeFi assets. He believes these tokens can outperform as fiat liquidity improves. The fund manager previously expanded his Bitcoin price prediction to $500,000 by year-end 2026.
He argues scarce assets like Bitcoin, gold and silver benefit most. Fiat currency expansion favors these alternative stores of value. Hayes acknowledges adverse effects of relentless money printing on average citizens.
Bitcoin traded around $92,695 on December 10 following Fed announcement. The cryptocurrency has since settled near $87,300. Market consensus on Polymarket shows 77% probability Fed maintains current rates. Only 21% chance exists for another 25 basis point cut.
