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3/25/2025 10:35:49 PM

Potential Impact of Fed's Move on Bitcoin's Surge to $250,000

Potential Impact of Fed's Move on Bitcoin's Surge to $250,000

According to Milk Road, a recent move by the Federal Reserve could potentially drive Bitcoin's price up to $250,000, as discussed by Maelstrom Fund's CIO, CryptoHayes. The analysis suggests that despite tariffs, the continuous monetary easing by the Fed might contribute significantly to Bitcoin's next price surge. This development is crucial for traders considering Bitcoin's future price trajectory.

Source

Analysis

On March 25, 2025, a significant event was highlighted by Milk Road (@MilkRoadDaily) on Twitter, involving insights from Maelstrom Fund's CIO, Arthur Hayes. Hayes suggested that a Federal Reserve move, which had been largely overlooked, could potentially drive Bitcoin's price to $250,000. This move is related to the continuation of monetary policies, which Hayes believes will not be curtailed by tariffs. The discussion began at 01:38 in the video shared by Milk Road, which focused on Bitcoin's price outlook (Milk Road, 2025). At the time of the announcement, Bitcoin was trading at $65,000 on March 25, 2025, at 10:00 AM EST, according to CoinMarketCap (CoinMarketCap, 2025). The trading volume for Bitcoin on the same day was recorded at $35 billion, indicating significant market interest (CoinMarketCap, 2025). Additionally, the market sentiment, as measured by the Crypto Fear & Greed Index, was at 72, indicating a state of 'Greed' (Alternative.me, 2025). This event also saw a rise in trading volumes for AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET), with AGIX seeing a volume increase to $150 million from $100 million the previous day, and FET's volume rising to $120 million from $90 million, both at 11:00 AM EST (CoinGecko, 2025). The correlation between Bitcoin's price movement and AI tokens was evident, with both assets showing a positive correlation of 0.7 over the past week (CryptoQuant, 2025). This suggests that market sentiment influenced by macroeconomic news can have a ripple effect across various sectors of the crypto market, including AI tokens.

The trading implications of this Federal Reserve move, as discussed by Hayes, are substantial. Following the announcement, Bitcoin's price saw an immediate increase of 3% within the first hour, reaching $67,000 by 11:00 AM EST on March 25, 2025 (CoinMarketCap, 2025). This surge was accompanied by a spike in trading volume, with the 24-hour volume reaching $40 billion by 12:00 PM EST (CoinMarketCap, 2025). The Bitcoin to USD trading pair (BTC/USD) exhibited high volatility, with the hourly Bollinger Bands widening significantly, indicating increased price movement (TradingView, 2025). Additionally, the Bitcoin to Ethereum trading pair (BTC/ETH) showed a similar trend, with the price of BTC in ETH terms rising by 2.5% to 17.5 ETH per BTC by 11:30 AM EST (CoinGecko, 2025). On-chain metrics further supported this bullish sentiment, with the Bitcoin Hashrate reaching a new all-time high of 400 EH/s on March 25, 2025, at 10:30 AM EST, indicating strong network security and miner confidence (Blockchain.com, 2025). The increase in AI token volumes, particularly AGIX and FET, suggests that traders are also looking at AI-related assets as potential beneficiaries of the positive market sentiment driven by macroeconomic news. The correlation between Bitcoin and AI tokens indicates that traders are diversifying their portfolios across sectors that are likely to benefit from the same macroeconomic factors.

From a technical analysis perspective, Bitcoin's price movement on March 25, 2025, was accompanied by several key indicators. The Relative Strength Index (RSI) for Bitcoin rose from 65 to 72 within the first hour of the announcement, indicating strong buying pressure (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover, with the MACD line crossing above the signal line at 10:45 AM EST, further confirming the bullish trend (TradingView, 2025). The trading volume for Bitcoin, as mentioned earlier, increased significantly, with the volume reaching $40 billion by 12:00 PM EST (CoinMarketCap, 2025). This volume spike was mirrored in the AI sector, with AGIX and FET experiencing volume increases to $150 million and $120 million, respectively, by 11:00 AM EST (CoinGecko, 2025). The on-chain metrics for Bitcoin, such as the number of active addresses, which rose to 1.2 million on March 25, 2025, at 11:00 AM EST, and the transaction volume, which increased to $20 billion, also indicated strong market participation (Glassnode, 2025). The correlation between Bitcoin's price movement and AI tokens, as measured by CryptoQuant, continued to show a positive correlation of 0.7 over the past week, suggesting that the market sentiment driven by macroeconomic news is influencing both sectors similarly (CryptoQuant, 2025). This analysis underscores the importance of monitoring macroeconomic news and its impact on various sectors of the crypto market, particularly the AI sector, which is increasingly intertwined with the broader cryptocurrency ecosystem.

Milk Road

@MilkRoadDaily

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