Arthur Hayes, co-founder of BitMEX, predicts Bitcoin will rise to $250,000 within the year, attributing this forecast to changes in U.S. fiscal policy under President Donald Trump. He believes the administration will move away from tariffs, which have negatively impacted economic growth, towards increased money printing as the midterm elections approach. Hayes argues that this shift will stimulate the housing market via changes to Fannie Mae and Freddie Mac, thereby enhancing liquidity and support for risk assets. He also mentions a potential exemption in leverage ratios for banks regarding U.S. Treasuries, which could further benefit global capital markets. In his view, these factors will lead to a surge in Bitcoin’s value, paralleling a growing trend among firms to adopt Bitcoin as a treasury reserve asset. Hayes also forecasts Ethereum could reach $5,000, highlighting its status as a currently undervalued layer-1 asset. He believes the broader bullish sentiment surrounding Bitcoin is influenced by regulatory advancements and fiscal stimulus initiatives planned by the government.

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