Arthur Hayes Predicts Bitcoin Rally To $500K By Next Year Over Fed Easing

BitMEX co-founder Arthur Hayes has predicted that Bitcoin’s price could rally to $500,000 by the end of next year. Hayes indicated that this price surge would happen on the back of quantitative easing (QE) from the Fed, with rate-cut advocate Kevin Hassett the frontrunner to become the next chair.

Bitcoin Could Reach $500k By Year-End 2026, Hayes Says

In an interview, the BitMEX co-founder stated that BTC could reach $500,000 by the end of next year. This came as he suggested that the bull run is far from over despite the recent crash to as low as $81,000.

Hayes also opined that the Bitcoin cycle top may not happen until the next U.S. presidential election in 2028. He predicts that this will occur due to a change in the rhetoric with a push for affordability and inflation, which will cause the government to cool off on money printing.

The BitMEX co-founder’s latest prediction comes just days after he predicted that the BTC price could rally to $250,000 by year-end. He explained that this could happen as the Fed and U.S. Treasury inject more liquidity into the market.

Hayes had also recently mentioned that $80,000 was likely the bottom for Bitcoin while noting that there has been an improvement in market liquidity. He had previously attributed the market crash to the decline in USD liquidity.

In this latest interview, the BitMEX co-founder reiterated that he doesn’t expect BTC to suffer any significant drawdown. He suggested that this November crash was the last major correction for the flagship crypto, and he expects it to hold even in the event of a stock market crash, were it to happen anytime soon.

Fed Expected To Begin QE Next Year As Trump Loyalists Gain Majority

Hayes also predicted that Trump will take over the Fed next year, which would prompt quantitative easing (QE), a development that could contribute to the projected Bitcoin rally to $500,000 by year-end 2026. As CoinGape reported, rate-cut advocate Kevin Hassett is the favorite to become the next Fed Chair, with his tenure possibly ushering in QE.

The BitMEX co-founder also noted that Trump and the U.S. Treasury Secretary Scott Bessent are already working to ensure that they gain control of the Fed. He predicts a 90% chance that the U.S. president will gain a majority on the Fed board.

The Fed Board currently consists of rate-cut advocates Chris Waller, Michelle Bowman, and Stephen Miran. However, Hassett is expected to take Miran’s seat on the board, as he is currently serving as a replacement for Adriana Kugler, whose tenure ends on January 31.