Earlier today, crypto entrepreneur Arthur Hayes made a bold prediction, saying that he does not see Bitcoin (BTC) falling below the psychologically important $80,000 level. Hayes made the statement based on multiple positive developments from the US Federal Reserve (Fed) regarding liquidity.
Hayes says Bitcoin not likely to tumble below $80,000
After creating multiple, successive new all-time highs (ATH) in 2025, BTC is seeing a sluggish end to the year. The top cryptocurrency by market cap has slipped 21.2% over the past month.
Some of the major factors that influenced BTC’s price include the diminishing likelihood of the Fed slashing interest rates at its December 10 meeting, and the rising concerns surrounding an ‘AI bubble.’
However, Hayes today offered some hope to the bulls, saying that improvements in USD liquidity in December will likely propel BTC’s price. In an X post published today, the former BitMEX CEO stated that the Fed will halt quantitative tightening as of December 1.
To explain, a stop in quantitative tightening means the Fed is no longer removing money from the economy. As a result, investors’ appetite for risk increases, benefitting risk-on assets like stocks and cryptocurrencies.
Hayes also referred to the US banks’ increasing lending in November 2025. When banks lend more, they indirectly create loose monetary conditions in the economy, enabling businesses and consumers to borrow and spend more.
Banks usually lend more when they see a lower probability of a looming recession. In turn, loose monetary conditions tend to benefit risk-on assets, including Bitcoin.
Hayes added that he sees BTC consolidating below $90,000, with a slim chance of it retesting the low $80,000 range. He added that the $80,000 support will likely hold, where he may start buying small amounts of BTC.
BTC scarcity narrative strengthens
Akin to Hayes, El Salvador President Nayib Bukele does not appear worried by Bitcoin’s recent bearish price action. Following the premier digital asset’s crash below $90,000, Bukele shared a screenshot on X, indicating that the country had bought the dip to increase its BTC reserves.
Recent exchange data shows that BTC reserves on crypto trading platforms have hit a seven-year low, raising the possibility of a ‘supply crunch’ that could lead to an extraordinary price increase for the cryptocurrency.
