Bitcoin Updates: Federal Reserve's Quiet QE and Institutional Moves Drive Bitcoin Toward $140K Even Amid Pullbacks
- Bitcoin dips below $100,000 as experts like Arthur Hayes and Bitwise CIO remain bullish, citing structural market shifts and Fed-driven "stealth QE" liquidity injections. - Institutional demand dominates a maturing market, with miners scaling operations and corporate treasuries adopting Bitcoin amid declining retail participation. - Analysts predict a potential $140,000 rally by year-end, driven by Fed balance-sheet expansion, improved on-chain metrics, and ETF demand recovery despite geopolitical risks.
Bitcoin has fallen below the $100,000 mark, but leading voices such as BitMEX co-founder Arthur Hayes and Bitwise’s CIO remain optimistic, pointing to fundamental market changes and possible monetary policy shifts. Even with the recent decline, experts believe that increased institutional involvement, growth in mining capacity, and the prospect of a "stealth quantitative easing" (QE) could drive Bitcoin toward $140,000 or beyond before the year ends.
The digital asset’s recent lackluster performance has been linked to a slowdown in ETF investments and increased selling by long-term holders. As noted in a
Despite the downturn, Hayes remains positive, viewing the current phase as a setup for a stronger bullish trend. In a recent
This argument is gaining support as Bitcoin’s infrastructure becomes more robust. Mining operations are expanding, with the network’s hashrate reaching an all-time high of 5.96 million ASICs in operation. BitMEX’s Ju described this as a “strong long-term bullish indicator,” noting that the rising hashrate signals increasing trust in Bitcoin as a “store of value,” as reported by Cointelegraph. Furthermore, corporate interest is rising, with companies like MicroStrategy adding Bitcoin to their reserves, and ETFs absorbing demand that once came from retail traders, as previously mentioned in the Coinotag analysis.
Nonetheless, some risks remain. ETF inflows have not yet recovered, and global tensions—including tariffs from the Trump administration—could slow a rebound. Still, Bitfinex analysts believe that a mix of Federal Reserve rate cuts, renewed ETF interest, and seasonal strength in the fourth quarter could propel Bitcoin to $140,000 by November, according to Cointelegraph. On-chain metrics also show that long-term holders are still in profit, with Bitcoin’s average acquisition price at $55,900 and unrealized gains near 93%, as detailed in the Coinotag analysis.
As the market looks for new drivers, Hayes and others stress the significance of liquidity cycles. “A sharp recovery is likely once ‘stealth QE’ takes effect,” he wrote in a
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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