The crypto world has been bustling this week with noteworthy warnings and announcements. Arthur Hayes predicts a market peak in Q1 2025, while Robert Kiyosaki warns of an impending crash. Shiba Inu’s new token TREAT initiative and plans to establish Bitcoin reserves in the U.S. were among the week’s highlights. Here’s a roundup of the major developments:
Arthur Hayes: Crypto Market to Peak in March, Followed by a Crash
Former BitMEX CEO Arthur Hayes has forecasted that the crypto market will peak in March 2025. However, he expects a sharp correction to follow. Hayes suggested that optimism stemming from a potential Trump election victory might wane if promises fail to materialize. In the short term, he noted that increasing dollar liquidity could support the markets.
Hayes anticipates the Federal Reserve withdrawing $180 billion of liquidity by the end of Q1 as part of its quantitative tightening policy. However, he notes this will be offset by a $237 billion injection, resulting in a net positive liquidity of $57 billion. Hayes advises investors to remain cautious and consider selling at the end of Q1.
Robert Kiyosaki: A Massive Bitcoin and Market Crash is Imminent
Robert Kiyosaki, author of Rich Dad Poor Dad, claims the largest market crash in history is near. Criticizing bailout policies from the 2008 financial crisis, Kiyosaki particularly targeted banks.
In his predictions for 2025, Kiyosaki expects the prices of assets such as housing, gold, silver, and Bitcoin to decline, presenting buying opportunities. Last week, Bitcoin’s price dropped from $102,000 to $92,000. As of writing, BTC has recovered slightly to $94,932.
Shiba Inu Announces TREAT Token Launch
Shiba Inu has revealed plans to launch a new token, TREAT, in January. TREAT is designed to provide governance and rewards across the ecosystem. However, U.S. users will not have access to TREAT, likely due to regulatory restrictions. While SHIB prices have been trending downward in recent weeks, a recovery is anticipated following the token’s launch. Kriptokoin.com has provided detailed insights on the new token in this article.
13 U.S. States Take Steps Toward Bitcoin Reserves
Dennis Porter, CEO of the Satoshi Action Fund, announced that 13 states have begun legislative efforts to establish Bitcoin reserves. Porter stated that 2025 will set records for Bitcoin-related policies. States like Texas, Ohio, and Pennsylvania are leading this initiative. Bitcoin’s position as a strong alternative to traditional assets, particularly gold, has fueled ongoing debates.
FDIC Signals a Halt to Bank Crypto Services
Coinbase reported that the U.S. Federal Deposit Insurance Corporation (FDIC) has instructed banks to cease their crypto services as part of a broader regulatory strategy.
Paul Grewal, Coinbase’s Chief Legal Officer, noted that this move aims to limit banks’ crypto operations. This development raises questions about the future of crypto services within traditional banking channels.
The rapid developments in the crypto market reflect the ongoing evolution of the sector. From innovative projects to regulatory maneuvers, the impact of these shifts remains a key point of focus for investors. As crypto innovation continues, keeping an eye on these dynamics will be crucial for market participants.
