Bill Barhydt, the CEO of Abra known for bold predictions in the cryptocurrency market, suggested that Bitcoin and Ethereum could reach record levels in the upcoming cycle. Through social media, Barhydt stated that the economic policies of the US government would significantly boost Bitcoin and other crypto assets. According to Barhydt, the policies executed under President Donald Trump’s administration would provide a massive liquidity injection to the market, increasing demand for cryptocurrencies. Efforts to lower interest rates and the necessity to refinance the expiring 7 trillion dollar US debt could greatly expand the money supply in the market.

His basic scenario is that tax cuts and expansive fiscal policies will accelerate this process, with Barhydt viewing Bitcoin reaching 350 thousand dollars by the first quarter of 2025 as the “base scenario.” However, in his more optimistic predictions, he stated that Bitcoin could rise to 700 thousand dollars and Ethereum to 16 thousand dollars. Likewise, he forecasted that Solana could reach 900 dollars in this cycle. Barhydt’s optimistic perspective is based on the belief that the increase in liquidity will boost interest in risky assets. Using the words, “My model is very simple. This administration wants to lower interest rates and will do whatever it takes to achieve that,” Barhydt argues that expansive monetary policies will drive Bitcoin and other crypto assets higher. He is not the sole famous investor holding optimistic expectations about the leading cryptocurrency; Strategy, known for its Bitcoin investment strategy, announced the purchase of an additional 7,633 bitcoins, totaling 742.4 million dollars between February 3 and 9. The company executed this purchase at an average cost of 97,255 dollars. This latest investment brought Strategy’s total bitcoin holdings to 478,740 BTC. As a result of this last purchase, Strategy’s total digital assets’ market value exceeded 46 billion dollars. Michael Saylor, the Chairman of the Board of the Company, disclosed that the total cost of Bitcoin purchased to date was approximately 31.1 billion dollars, with the average purchase price of the company being at 65,033 dollars. Based on current figures, the company holds more than 2.2% of the total Bitcoin supply. As of the current data, the company’s bet on Bitcoin’s rise is considerable when considering its share in the total supply.

However, there are also those who share a more cautious view of the market’s future. Former BitMEX CEO Arthur Hayes displays a more reserved approach to the future of the market. While acknowledging that increased liquidity can positively impact crypto markets, Hayes mentions that this may not happen immediately. In a blog he wrote, Hayes expressed the possibility of Bitcoin revisiting the levels seen in the fourth quarter of 2024, suggesting that the price could drop to a range of 70 to 75 thousand dollars.