Bitcoin Eyes $110K as Analysts Point to Easing Inflation and Growing Liquidity

Bitcoin Eyes $110K as Analysts Point to Easing Inflation and Growing Liquidity

Bitcoin may be poised for a new all-time high of $110,000, with some market analysts highlighting easing inflation and rising global liquidity as key catalysts behind the bullish momentum.

Following two consecutive weeks of gains, Bitcoin closed the week above $86,000 on March 23, according to TradingView data. The strong weekly close has further fueled optimism among traders and investors.

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, is among those with a highly bullish outlook. In a March 24 post on X, Hayes declared:

“I bet $BTC hits $110k before it retests $76.5k. Why? The Fed is shifting from QT to QE for treasuries. And tariffs are irrelevant due to ‘transitory inflation.’ JAYPOW told me so.”

He followed up by emphasizing that he believes Bitcoin is more likely to surge to $110,000 before experiencing any significant correction down to $76,500. “If we hit $110k, then it’s yachtzee time and we ain’t looking back until $250k,” Hayes added.

QE Optimism and Market Dynamics

Quantitative Tightening (QT) refers to the Federal Reserve reducing its balance sheet by selling off assets or letting them mature without reinvestment. In contrast, Quantitative Easing (QE) involves the Fed purchasing bonds to inject liquidity into the financial system, typically to lower interest rates and stimulate economic activity.

While Hayes sees a transition toward QE as imminent, others argue the Fed’s shift is still in progress. “QT is not ‘basically over’ on April 1st. They still have $35B/month rolling off from mortgage-backed securities. It’s just a slowdown, from $60B/month to $40B/month,” noted Benjamin Cowen, CEO of IntoTheCryptoVerse.

Nevertheless, the anticipation of a full QE pivot has many in the crypto space optimistic. The last QE cycle in 2020 saw Bitcoin skyrocket over 1,000%, from $6,000 in March to a then-record high of $69,000 by November 2021—a trajectory some analysts believe could repeat.

Macro Trends and Technical Indicators Support Bullish Case

Market analyst Emmanuel Cardozo from RWA platform Brikken told Cointelegraph that macroeconomic conditions are aligning for another major move. “With rising global liquidity and ongoing discussions about a potential U.S. Bitcoin reserve, we’re seeing a clear setup for a supply squeeze on exchanges,” he said. “That could push BTC toward the $110,000 mark.”

Still, Cardozo warned that a retracement to $76,500 remains plausible, given Bitcoin’s historical volatility and tendencies for profit-taking.

Ryan Lee, chief analyst at Bitget Research, echoed the bullish sentiment, citing Bitcoin’s recent close above both the 21-day and 200-day moving averages. However, he cautioned that the $88,000 level remains a significant resistance zone that needs to be cleared for the rally to continue.