How Far Ethereum, Bitcoin Will Go In 2025 According to Arthur Hayes

Arthur Hayes predicts Bitcoin and Ethereum prices will surge due to credit expansion, government policies, and growing institutional interest.

At the same time, the crypto market has been showing mixed results over the last 24 hours. The pricing trends of Ethereum and Bitcoin have been slightly diverging.

Bitcoin price, on one hand, was trading at $118,333, seeing a mere 0.22% price appreciation in the past 24-hour period.

However, it is slightly down in the last 7 days, maintaining a level of 0.29% decrease. Ethereum (ETH) is starting to gain strength with its price of $3,684.57, which has witnessed a 1.40% increase during the past 24 hours and 16.47% over the last week.

This performance coincides with a recent post by upscale crypto personality Arthur Hayes, who predicts that Bitcoin and Ethereum prices will shoot up before the end of the year.

According to Hayes, the driving factors behind this potential price surge are war-driven credit growth and the policies of the U.S. government under the Trump administration.

He argues that as the U.S. economy moves toward what he describes as a “fascist economic system,” there will be a significant increase in credit expansion, which will directly influence the prices of assets like BTC.

Arthur Hayes’ Bitcoin Price Prediction and Economic Analysis

Hayes emphasizes the role of credit growth in fueling the price increase of Bitcoin. As the government issues more money, it inflates Bitcoin’s price.

This creates a cyclical effect where the expansion of credit leads to more money entering the crypto market. Especially in the form of stablecoins such as Tether.

Hayes believes that these stablecoins are being used to purchase U.S. Treasury bills (T-bills), which, in turn, enables the government to finance its deficit, further fueling the cycle of economic growth.

A key part of Hayes’ argument lies in the unique relationship between Bitcoin and credit expansion. He says that Bitcoin’s price has historically been correlated with credit growth.

When there is more money pumping into the economy, the price of Bitcoin tends to increase, and investors from retail to institutions start investing in it.

This dynamic has therefore made BTC one of the major beneficiaries of the government monetary policies.

Hayes believes the trend is tied to the larger goals of the U.S. economy. Whenever people migrate toward Bitcoin to save their wealth during inflationary periods, Hayes regards this as a potential long-term trend that is going to continue to reinforce Bitcoin’s market position.

Ethereum’s Bullish Outlook

Alongside his bullish stance on BTC, Hayes forecasts a significant rise in the price of Ethereum. In his view, factors such as funding from institutional investors, which is on the rise, and its need within DeFi will contribute to price increases.

According to Hayes, Ethereum is an unappreciated asset in the present-day market environment.

With increasing institutional cash flow into the crypto space, there is a possibility that the price of Ethereum could even hit $10,000 by the year’s end, he noted.

The optimism surfaces from the increased usage of Ethereum for decentralized applications (dApps) and smart contracts, weaving it into the backbone of the blockchain ecosystem.

Market Sentiment and In-the-Money Distribution

With a view on the current market sentiment, one thing stands out: almost all Bitcoin holders currently seem to be in the money.

Data show that 99.57% of BTC addresses are in the money. This means that most BTC holders are witnessing a profit. Which indeed reveals the fundamental aspect of a good market sentiment.

Around 93.88% of Bitcoin addresses hold value at prices lower than the current value of $118,497.93.

This indicates the majority of holders are safely in profiting positions. That justifies the bullish sentiment with regard to Bitcoin price.

Furthermore, the concentration of addresses around the present Bitcoin price shows the stability of the market.

Around 5.69% of open Bitcoin positions are at the money. It can be regarded as a healthy measure of Bitcoin holdings bought at the current price level.

It suggests a steady market condition with the chances of the price continuing its appreciation in case of positive trends, like the ones mentioned by Hayes.