The post Bitmex CEO Says Bitcoin’s Drop Is Over—Predicts Fed Rate Cuts Will Spark a Rally appeared first on Coinpedia Fintech News

Bitcoin is making a strong comeback, jumping to $86k after the latest Federal Open Market Committee (FOMC) meeting. But according to former BitMEX CEO Arthur Hayes, this is just the beginning. He predicts the Federal Reserve will cut interest rates on April 1, which could trigger a massive Bitcoin rally. Could BTC hit $90,000 next?

Bitcoin’s Drop Is Over—Big Rally Ahead?

Arthur Hayes believes Bitcoin’s recent dip to $77k was the bottom. He points to April 1 as a turning point, when the Fed is expected to stop its policy of quantitative tightening (QT). If that happens, more money could flow into the market, pushing Bitcoin higher.

He also suggests that the U.S. stock market might keep falling, forcing the Fed to step in with policies that could help Bitcoin. Hayes’ advice? “Stay nimble and cashed up” because big moves are coming!

Additionally, Crypto and stock traders have been predicting that the Fed will slow down its tightening policy. The FOMC minutes confirmed this, revealing that the Fed will cut its monthly Treasury sales limit from $25 billion to $5 billion.

Bitcoin Eying $90K Next

After the FOMC meeting, Bitcoin didn’t waste any time reacting to the Fed meeting . It jumped 3.5% to $87,000 and is now testing key resistance levels. Meanwhile, crypto analyst IncomeSharks noted that if BTC closes above $86,351, it could break out and start a major rally.

Another key factor is the rising M2 money supply, which has a strong link to Bitcoin’s price. Experts say even a small 10% increase in liquidity could more than double Bitcoin’s price. If this trend continues, BTC could hit $90,000 or even higher in April!

Experts Disagree With Hayes’s Prediction

While Hayes is confident that QT will end by April 1, not everyone agrees. Analyst Benjamin Cowen argues that QT is still ongoing, with the Fed reducing its balance sheet by $35 billion per month.

Still, if the Fed does lower rates as Hayes predicts, Bitcoin could be in for a massive surge. With April just around the corner, all eyes are on the Fed next meeting.