Bitcoin Price Prediction: Short-Term Dip to $90K Possible
Arthur Hayes, co-founder of BitMEX, suggests Bitcoin could temporarily decline to $90,000 due to potential market liquidity changes stemming from President Trump‘s proposed spending bill. The legislation, which aims to cut taxes and raise the debt ceiling, may increase national debt by $3.3 trillion over ten years. While warning of short-term volatility, Hayes maintains a positive long-term outlook for Bitcoin.
Market Liquidity and Bitcoin’s Price
Hayes explains that refilling the U.S. Treasury‘s General Account could remove approximately $500 billion from markets, potentially affecting asset prices including Bitcoin. This temporary liquidity drain might push Bitcoin’s price downward before recovering.
Long-Term Growth Prospects
Despite near-term concerns, Hayes anticipates Bitcoin reaching $250,000 by 2025, driven by Federal Reserve monetary policies and Bitcoin’s role as an inflation hedge. The cryptocurrency currently trades around $109,025, slightly below its May 2025 peak of $111,814.
Key Insights
- Short-term Bitcoin price fluctuation possible due to Treasury actions
- National debt may grow significantly under proposed legislation
- Strong long-term growth potential for Bitcoin remains intact
- Federal Reserve policies crucial for cryptocurrency’s future trajectory
