Arthur Hayes expects Bitcoin to reach $250,000 by 2025 due to fiat supply growth and increased crypto demand.
Ethereum may hit $10,000 this year as stablecoin issuers inject liquidity into the market through US Treasury bills.
Credit expansion and government deficits are pushing more investors toward Bitcoin as a hedge against inflation.
BitMEX co-founder Arthur Hayes has restated his 2025 year-end price targets for Bitcoin and Ethereum. He expects Bitcoin to reach $250,000 and Ethereum to climb to $10,000. The forecasts reflect Hayes' analysis of ongoing fiat supply expansion and capital inflows into crypto markets.
https://twitter.com/Cointelegraph/status/1947846693250027822 Fiat Liquidity Pushes Demand for Crypto Assets
Hayes attributes the projected surge in Bitcoin and Ethereum prices to excessive fiat creation. According to his recent blog post, the increase in global money supply since 2009 continues to push crypto valuations higher. Investors are turning to Bitcoin due to its fixed supply and historical price performance.
He points out that with the influx of fiat money in the financial system, the price of Bitcoin has increased. This fluidity and limited availability of Bitcoin has helped to reinforce its use as a hedge. Ethereum is expected to rise due to technical improvements and increasing usage in the field of decentralized finance.
Global Events and U.S. Policy Add to Momentum
Despite market concerns over global conflicts and tariffs, Hayes sees little impact from these developments. He argues that economic ties between nations limit drastic policy shifts. He highlighted the dependency between China and the U.S. in areas like rare earth minerals, which reduces the likelihood of disruptive trade measures.
Stablecoin issuers play a growing role in the crypto-financial landscape. Hayes points out that they are using assets under custody to purchase U.S. Treasury bills. The passage of the GENIUS Act will also aid in the flow of capital to the crypto market.
Ethereum Benefits from Network Improvements
The post-merge upgrades of Ethereum have enhanced its energy consumption and transaction performance. The recent Pectra upgrade introduced wallet smart-contract features and validator limit changes. The changes reinforce the network in decentralized applications. Ethereum is also becoming popular in the field of NFTs, DeFi, and tokenized assets.
Hayes believes that the developing ecosystem of Ethereum will aid his price target. At press time, ETH is trading at $3,715, a 0.93% increase in the past day.
Bitcoin Maintains Position as Inflation Hedge
Bitcoin remains a core asset for investors seeking protection from inflation. Hayes likens its role to that of gold during monetary crises. He believes Bitcoin will benefit from current economic trends, especially as fiat currencies lose value. Meanwhile, the top cryptocurrency is trading at $118,713, a 1.16% increase in the past day.
