Bold predictions about the crypto market by technology company Abra’s CEO Bill Barhydt suggest that Bitcoin and Ethereum could reach record levels in the upcoming cycle. Barhydt, known for his daring predictions, claimed via social media that the economic policies of the US government would significantly boost Bitcoin and other crypto assets. According to Barhydt, the policies under President Donald Trump’s administration will provide a massive liquidity injection into the market, increasing the demand for cryptocurrencies. Efforts to lower interest rates and the necessity to refinance the expiring 7 trillion dollar US debt could significantly expand the money supply in the market.

Barhydt also stated that tax cuts and expansive fiscal policies would accelerate this process. He sees Bitcoin reaching 350,000 dollars in the first quarter of 2025 as a “base scenario.” However, he believes Bitcoin could go up to 700,000 dollars and Ethereum to 16,000 dollars in more optimistic scenarios. He also predicts Solana could reach 900 dollars in this cycle. Barhydt’s optimistic outlook is based on the idea that the increase in liquidity will raise interest in risky assets. Defending his viewpoint with the statement “My model is very simple. This administration wants to lower interest rates and will do whatever it takes to achieve this,” Barhydt claims that expansive monetary policies will push Bitcoin and other crypto assets upwards.

Barhydt is not the only famous investor with optimistic expectations regarding the leading cryptocurrency. Strategy, known for its Bitcoin investment strategy, announced that from February 3 to 9, it acquired an additional 7,633 bitcoins for a total of 742.4 million dollars. The company made this purchase at an average cost of 97,255 dollars. With this latest acquisition, Strategy’s total Bitcoin holdings reached 478,740 BTC. The total market value of the company’s digital assets now exceeds 46 billion dollars. The Chairman of the Board of Directors, Michael Saylor, stated that the total cost of the Bitcoins purchased to date is approximately 31.1 billion dollars, with the average purchase price of the company being at 65,033 dollars. Considering the current figures, the company now has more than 2.2% of the total Bitcoin supply. When looking at the company’s bet on Bitcoin’s rise in the future in the context of its share in the total supply, it holds a considerable stake.

However, there are also individuals who are not as optimistic as Barhydt. Former CEO of BitMEX, Arthur Hayes, takes a more cautious approach towards the market’s future. While acknowledging that the increase in liquidity could positively impact crypto markets, Hayes suggests that this might not happen immediately. In a blog post, Hayes mentioned that Bitcoin could retest levels seen in the fourth quarter of 2024 and expressed the possibility of the price dropping to the range of 70,000 to 75,000 dollars.