Bitcoin’s 22% drop from its January peak has reignited debate over its role as a hedge against financial turmoil.
While gold has soared to $3,000 per ounce, Bitcoin has behaved more like a high-beta tech stock, tumbling alongside the Nasdaq.
But Arthur Hayes, CIO of Maelstrom, isn’t fazed.
He believes Bitcoin’s correction is a temporary liquidity squeeze — and that once the cycle turns, it will rally to $250,000 by year-end.
“We are experiencing a low in liquidity fiat money generation,” Hayes said in a recent interview with Bitcoin News’ David Sencil.
He argues that Trump-aligned interests are deliberately creating recession fears to force the Federal Reserve’s hand.
The ultimate goal? More money printing.
“They’re going to reflate and print more money than anyone’s ever printed before,” he predicted.
Despite recent volatility, Hayes expects Bitcoin to bottom before equities, citing past liquidity cycles.
“We had a great run from $20,000 to $110,000, and now we’re in a 30% correction. Pretty normal for a bull market,” he said.
He believes the Federal Reserve will eventually step in to stabilise markets, triggering the next leg up for Bitcoin.
“When there’s financial distress, they always print money. It doesn’t matter what the political leanings are.”
For Hayes, the key signal to watch isn’t Bitcoin’s price action — it’s the return of liquidity.
“When the floodgates open, it’s go time,” he said.
Crypto market movers
- Bitcoin has gained 1.5% over the past 24 hours and is trading at $83,830.
- Ethereum is up 1.3% over the same period to $1,920.
What we’re reading
- US investors missed out on billions in airdrops, according to crypto VC firm — DL News
- This reliable recession indicator says… — Milk Road
- Tokenized Treasuries Grow 20X Faster Than Stablecoins as Crypto Market Languishes ― Unchained
- Why a16z is slow to deploy $4.5bn crypto fund raised three years ago — DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at [email protected].