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- Bitcoin could hit $700K and Solana $1,800 amid massive liquidity injection, says Abra CEO Bill Barhydt.
- Lower interest rates, tax cuts, and institutional adoption may drive crypto prices to new all-time highs.
Bitcoin could skyrocket to $700,000 this cycle, while Solana aims for $1,800, according to Abra CEO Bill Barhydt. The veteran crypto investor predicts a “cyclical Valhalla” starting in Q1, driven by a massive liquidity injection from the U.S. government. With expectations of lower interest rates, tax cuts, and debt refinancing, Barhydt believes risk assets like Bitcoin and Solana are set for explosive growth.
As of now, Bitcoin is hovering around $97,466, with minor fluctuations noted in the past week. Despite these movements, his base case puts BTC at $350,000, with the possibility of doubling if conditions align. Institutional adoption is also gaining momentum, with BlackRock’s Larry Fink suggesting Bitcoin could reach these levels as more major funds increase exposure.
Bill Barhydt’s Bitcoin and Solana Price Projections
In a series of posts on X (formerly Twitter), Barhydt laid out his forecast, citing economic shifts that could send crypto prices soaring. He predicts Bitcoin will reach at least $350,000, with a potential high of $700,000. Ethereum and Solana are also expected to see major gains, with ETH targeting $8,000 and SOL reaching $900 in the base scenario.
“The high end of the range is ~2x these values,” Barhydt noted, suggesting SOL could reach as high as $1,800. His bullish outlook is based on the assumption that a new wave of liquidity, triggered by government policy changes, will flood the financial system.
Institutional investors are also showing increased interest in Bitcoin. BlackRock CEO Larry Fink recently stated that sovereign wealth funds and large asset managers are debating whether to allocate 2% to 5% of their portfolios to BTC. This growing institutional adoption, Fink suggested, could push Bitcoin to unprecedented price levels.
“If you are frightened of debasement of your currency…you can have an internationally based instrument called Bitcoin….I’m a big believer…” – Larry Fink of @BlackRock pic.twitter.com/C3VJQpqTML
— Michael Saylor⚡️ (@saylor) January 22, 2025
Liquidity Surge Under Trump Administration Could Fuel Rally
Barhydt’s confidence in a Bitcoin surge stems from expectations that the Trump administration will implement policies favoring lower interest rates and aggressive tax cuts. He highlighted the need to refinance over $7 trillion in U.S. debt as a key factor leading to a massive liquidity injection.
“My model is simple. This administration wants interest rates much lower, and they’ll do whatever they have to achieve that,” Barhydt explained. He pointed to quantitative easing (QE) and other expansionary monetary policies as potential catalysts for Bitcoin’s next leg up.
Historically, similar liquidity-driven environments have fueled strong rallies in risk assets, including equities and crypto. If the U.S. government follows through with these policies, Bitcoin and Solana could see exponential gains in the coming months.
Market Remains Divided on Bitcoin’s Path
While Barhydt and Fink remain bullish, not all analysts share their optimism. Former BitMEX CEO Arthur Hayes warned that the market could experience a sharp pullback before any major rally. He argued that initial enthusiasm over Trump’s policies might fade, leading to a short-term correction.
“As the global community quickly realizes that politics in America didn’t change that dramatically just because Trump got elected, the price of cryptos will fall to levels seen in the fourth quarter of 2024,” Hayes wrote in a recent blog post.
Despite differing opinions on Bitcoin’s immediate trajectory, long-term adoption remains on the rise. A recent CNF update discussed that Coinbase CEO Brian Armstrong recently projected Bitcoin will have billions of users by 2030, with adoption outpacing both mobile phones and the internet.
Recently, Solana has managed to surpass key resistance levels, bolstering its bullish outlook. Despite experiencing a notable 30% decline since peaking at $294.33 on January 19, emerging signs of accumulation hint at a potential shift towards positive sentiment. As reported by CNF on Monday, Solana’s spot market witnessed a significant inflow of $16 million—the first major inflow in ten days—signaling a resurgence of investor interest in the cryptocurrency.
Analysts have set price targets at $232 and $261, with the potential for a 27% surge. If Solana maintains its position above the crucial $200 mark, a larger breakout could be on the horizon, aligning with Barhydt’s high-end price projection of $1,800 in the next cycle.
