Bitcoin Faces $250K Prediction, Quantum Risks, New US Crypto Laws, and XChat Launch

'Money Printing' Will Lift Bitcoin to $250K This Year: Arthur Hayes (Source: Decrypt)

BitMEX co-founder Arthur Hayes predicts that Bitcoin’s price will more than double within the next six months, reaching $250,000 by the end of the year. Hayes attributes this anticipated surge to a shift in U.S. fiscal policy, as President Donald Trump is expected to move away from tariffs and instead accelerate money printing to stimulate the economy ahead of the 2026 midterm elections.

Hayes points to potential changes in government-backed mortgage giants Fannie Mae and Freddie Mac, suggesting that if these entities are allowed to go public and raise capital, it would inject cheap liquidity into the housing market and make mortgages more affordable. He also highlights discussions about a supplemental leverage ratio (SLR) exemption for U.S. Treasuries, which would allow banks to apply greater leverage when buying treasury bonds, a move Hayes describes as “very positive for global capital markets.”

Additionally, Hayes foresees a shift from tariffs to capital controls, such as taxing foreign government holdings of U.S. assets, which could drive governments toward gold and Bitcoin. In his latest essay, Hayes also predicts that Bitcoin could reach $1 million before 2028. Earlier this month, he had forecasted a $150,000 price for Bitcoin this year, but has since raised his target to $250,000. Billionaire investor Tim Draper has made similar predictions, citing regulatory tailwinds under the Trump administration and the adoption of Bitcoin as a treasury reserve asset by various firms.

Hayes also believes Ethereum will rebound this year, potentially rising as high as $5,000, especially as Congress considers legislation to regulate stablecoins and create a taxonomy for digital assets.

“They’re going to accelerate the money printing,” Hayes said, referring to the Federal Reserve.

• Bitcoin price target for 2024: $250,000 (Arthur Hayes)
• Potential for $1 million before 2028
• Ethereum could reach $5,000 this year
• Key drivers: U.S. fiscal stimulus, regulatory changes, and adoption by firms

Infobox: Arthur Hayes expects Bitcoin to reach $250,000 in 2024, driven by U.S. fiscal stimulus and regulatory shifts, with Ethereum also poised for a strong comeback. (Source: Decrypt)

Elon Musk says X’s DM feature XChat to have ‘Bitcoin-style encryption’ (Source: Cointelegraph)

Elon Musk announced that X, formerly Twitter, is rolling out a new messaging feature called XChat, which will include “Bitcoin-style encryption.” The new service, built on the Rust programming language, will offer audio and video calling, encryption, vanishing messages, and the ability to send any kind of file. Musk stated that XChat’s encryption is based on a “whole new architecture.”

However, the claim of “Bitcoin-style encryption” was quickly challenged by members of the Bitcoin community. JAN3 CEO Samson Mow and Bitcoin core developer Luke Dashjr pointed out that Bitcoin does not use encryption, but rather elliptic curve cryptography. BitMEX Research suggested that Musk might be referring to BIP-151, a Bitcoin Improvement Proposal for encrypting node data. XChat is currently being rolled out to paid subscribers and is protected by a four-digit passcode.

In addition to XChat, Musk confirmed that X is working on a payments feature called X Money, which will launch in a limited beta later this year. Musk emphasized the need for extreme care when dealing with people’s savings. The new features are part of Musk’s vision to turn X into an “everything app,” aiming to rival platforms like Telegram, Signal, Venmo, and Cash App.

• XChat features: audio/video calling, encryption, vanishing messages, file sharing
• Built on Rust; “Bitcoin-style encryption” debated by experts
• X Money payments feature in limited beta later this year

Infobox: X is introducing XChat with advanced messaging features and debated “Bitcoin-style encryption,” while also preparing to launch X Money payments. (Source: Cointelegraph)

New York Man Denied Bail Over Alleged Bitcoin Ransom, Torture Plot (Source: Decrypt)

William Duplessie, 32, has been indicted by a Manhattan grand jury on charges of kidnapping, assault, unlawful imprisonment, and weapons possession. Duplessie and co-defendant John Woeltz, 37, are accused of holding an Italian national hostage for 17 days in a Soho townhouse, allegedly to force access to a Bitcoin wallet. The victim was reportedly tortured with electrical wires, forced to smoke cocaine, and at one point dangled from a five-story staircase.

Woeltz was previously denied bail after requesting release on a $2 million bond, while Duplessie’s request for $1 million bail was also denied due to the severity of the case. A third individual, Beatrice Folchi, was arrested and charged with first-degree kidnapping and unlawful imprisonment but was released pending further investigation. The indictments for Duplessie and Woeltz will remain sealed until June 11 for their arraignment.

The victim managed to escape on May 23 after being pistol-whipped and pretending to surrender their password. Police found a saw, cocaine, chicken wire, body armor, night-vision goggles, ballistic helmets, ammunition, and Polaroid photos of the victim with a gun to their head in the townhouse. The case is part of a growing trend of violent attacks targeting crypto investors.

• Duplessie and Woeltz accused of 17-day kidnapping and torture for Bitcoin ransom
• Bail denied for both due to severity; arraignment set for June 11
• Victim escaped after 17 days; police found weapons and evidence in townhouse

Infobox: Two men remain in custody over a high-profile Bitcoin ransom and torture case in Manhattan, with indictments sealed until June 11. (Source: Decrypt)

Bitcoin Suddenly Braced For $7 Trillion ‘Critical’ Price Tipping Point After Stark BlackRock Warning (Source: Forbes)

Bitcoin has experienced a sharp decline, falling by almost 10% from its all-time high of $112,000 to just over $103,000, and is now approaching the $100,000 level. This drop comes amid warnings from BlackRock and new research from Google suggesting that quantum computers capable of breaking current encryption could be closer than previously thought. Google Quantum AI researcher Craig Gidney noted a “20-fold decrease in the number of qubits” needed to break public-key encryption similar to that used by Bitcoin.

Investor Chamath Palihapitiya responded by stating that “the only safe trade are hard assets and, dare I say, gold.” Analysts at 10x Research, led by Markus Thielen, suggest that long-term Bitcoin holders are beginning to sell, and the coming week will be critical for the crypto market, with key economic data and U.S. policy developments on the horizon. Matt Mena of 21Shares highlighted that with $7 trillion in money market funds and $2 trillion in fixed income ETFs, even a modest shift in sentiment could redirect significant capital into crypto.

BlackRock, which manages around $10 trillion in assets, now holds about 3% of all Bitcoin, worth $70 billion at current prices. The company has added quantum computing to its list of risks for its spot Bitcoin ETF, warning that advances in quantum technology could undermine the cryptographic algorithms used by Bitcoin. David Carvalho, CEO of Naoris Protocol, warned that “no blockchain is ready to withstand a quantum attack when this becomes possible, which could very well be much earlier than 2030.”

Infobox: Bitcoin faces a critical price tipping point amid quantum computing risks and large-scale asset shifts, with BlackRock holding 3% of all Bitcoin. (Source: Forbes)

Bitcoin all-time high, five US states enact crypto laws: May in Charts (Source: Cointelegraph)

In May, Bitcoin reached a new all-time high above $111,000, and Coinbase joined the S&P 500. The month saw significant legislative progress in the U.S., with five states enacting crypto-related laws. Texas established a state Bitcoin reserve, while New Hampshire enabled the state treasurer to invest in public funds containing precious metals and digital assets. Arizona created a Bitcoin and Digital Assets Reserve Fund to hold unclaimed digital assets, which the state can now claim after three years of no contact and stake for rewards.

Nebraska passed LB526, giving public power utilities authority over Bitcoin miners using 1 megawatt or more, including the ability to require them to cover infrastructure upgrade costs and comply with new permit and reporting requirements. Oregon included crypto in its Uniform Commercial Code. On May 12, a 90-day suspension of U.S.-China tariffs led to a 2% increase in Bitcoin’s price, with the S&P 500 and Nasdaq gaining 4.5% and 3%, respectively.

On May 22, “Bitcoin Pizza Day,” Bitcoin’s market capitalization surpassed $2.2 trillion, overtaking Amazon. The price hit $109,000 and later peaked at $111,970. However, by the end of the month, demand cooled, with spot Bitcoin ETFs recording $347 million in net outflows on May 29. Coinbase’s stock rose 19.37% in May, closing at $248.84, despite a $400 million security incident.

• Five U.S. states enacted crypto laws in May
• Texas and New Hampshire established state Bitcoin reserves
• Arizona created a reserve fund for unclaimed digital assets
• Nebraska introduced new regulations for Bitcoin miners
• Oregon updated its commercial code to include crypto

Infobox: May saw Bitcoin reach $111,970, five U.S. states pass crypto laws, and Coinbase join the S&P 500 with a 19.37% stock increase. (Source: Cointelegraph)

Sources:

• 'Money Printing' Will Lift Bitcoin to $250K This Year: Arthur Hayes
• Elon Musk says X’s DM feature XChat to have ‘Bitcoin-style encryption’
• New York Man Denied Bail Over Alleged Bitcoin Ransom, Torture Plot
• 'Bitcoin Has Never Been More Important': Bitwise CEO Reacts To Elon Musk's Call To Accelerate GDP Growth
• Bitcoin Suddenly Braced For $7 Trillion ‘Critical’ Price Tipping Point After Stark BlackRock Warning
• Bitcoin all-time high, five US states enact crypto laws: May in Charts