US Fed money printing could push Bitcoin above $100K in Q1 2025

Bitcoin’s (CRYPTO:BTC) price trajectory in the first quarter of 2025 could benefit from a substantial liquidity boost, with over $612 billion expected to be added by the US Federal Reserve.

This influx of capital could counteract investor concerns about delays in crypto regulations under the incoming Trump administration.

As of January 8, 2025, Bitcoin saw a significant decline, dipping below the psychological $100,000 mark.

This fall is linked to uncertainties surrounding the delay of crypto-friendly legislation that many had hoped for under President-elect Donald Trump.

While Trump’s upcoming inauguration on January 20 is seen as a positive step for the cryptocurrency industry, some analysts warn that the lack of immediate regulatory clarity could dampen market enthusiasm.

Arthur Hayes, co-founder of BitMEX, emphasised the potential impact of the US Treasury’s liquidity injection, which could bring a temporary surge to Bitcoin’s price.

Hayes noted that an increase of up to $612 billion in the first quarter could mitigate any disappointment caused by regulatory delays, with Bitcoin possibly peaking in March 2025 before a subsequent correction due to slower-than-expected policy action.

“After Trump’s inauguration, money printing will accelerate, potentially leading to a local top for Bitcoin,” Hayes stated in a blog post.

However, Hayes also cautioned that any lag in implementing crypto policies could result in a market downturn.

Despite regulatory concerns, analysts remain optimistic about Bitcoin’s long-term performance, with some projecting the digital asset could reach over $150,000 by late 2025.

This growth is tied to expectations of a $20 trillion increase in global money supply, with $2 trillion potentially flowing into Bitcoin.

Some institutional investors are already betting on Bitcoin’s rise, including KULR Technology Group, which forecasted a $200,000 Bitcoin price for 2025.

At the time of reporting, the Bitcoin (BTC) price was $95,105.44.