Hayes attributes<\/a> <\/strong>this optimism to expected pro-business policies and a $612 billion liquidity boost from the U.S. Treasury, which he believes will propel Bitcoin<\/a> <\/strong>to new highs before a market correction occurs.<\/p>\n

Hayes highlights that the Treasury\u2019s spending, particularly if the debt ceiling is resolved, will inject significant funds into the market, offsetting the Federal Reserve\u2019s ongoing quantitative tightening. He notes that past liquidity surges, such as those in 2022, helped Bitcoin reverse its downward trends, and a similar dynamic could unfold in early 2025.<\/p>\n

However, Hayes warns that this bullish phase may not last beyond March. Tightening liquidity conditions and reduced fiscal support, coupled with the tax season draining Treasury reserves, could lead to a sharp market pullback. He compares the potential correction to Bitcoin\u2019s decline in mid-2024 after peaking at $73,000.<\/p>\n