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Bitcoin (Cryptocurrency: BTC) is consolidating below $90,000, but BitMEX co-founder Arthur Hayes said the pause masks a strong liquidity-driven move that could push the cryptocurrency to $200,000 in 2026.
what happened: In his latest article, “The Language of Love,” Hayes argues that the Fed’s new Reserve Management Purchase (RMP) program is actually a rebranded form of quantitative easing (QE).
He said the change in terminology was to avoid causing market panic by public references to money printing.
Although the Fed defines RMP as a technical operation involving short-term Treasury bills rather than long-term bonds, Hayes believes its impact on the economy is the same.
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The central bank creates new money to buy Treasury bonds from money market funds and then recycles that cash into the Treasury issuance or repo market.
The end result, he believes, is that the government continues to provide funding and increases liquidity in the financial system.
Hayes dismissed debate over whether the freeze management program was different from quantitative easing, saying the key signal was balance sheet expansion. In this environment, he believes that hard assets such as Bitcoin and gold are the most effective hedges against currency devaluation.
He also believes that the traditional four-year Bitcoin cycle has been replaced by a “perpetual” cycle of debt monetization.
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Why it’s important: Hayes warned that an immediate sharp rebound was unlikely because markets currently view RMP as less stimulating than traditional quantitative easing.
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Early 2026: Bitcoin could move sideways between $80,000 and $100,000 as investors assess policy shifts.
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Breakout phase: As RMP is seen as continued money creation, and other central banks are forced to ease monetary policy to protect their currencies, liquidity may flow into risk assets.
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Price Target: Hayes expects Bitcoin to recover to $124,000 before accelerating to $200,000 in 2026.
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Arthur Hayes says Bitcoin will hit $200,000 by 2026 thanks to new Fed plan originally published on Benzinga.com