Bitcoin Approaches $100,000 as Treasury Drives Liquidity, Says Expert
Arthur Hayes, co-founder of BitMEX, claims the US Treasury drives the current bull market in risk assets, particularly Bitcoin. In a recent interview, he stated that traders should focus on Treasury announcements rather than Federal Reserve updates.
- Hayes dismissed Fed Chair Jerome Powell's relevance, citing liquidity dynamics initiated by former Treasury Secretary Janet Yellen's strategies in 2022.
- He highlighted Treasury Secretary Scott Bessent's authority for buybacks as a significant factor to stabilize markets without increasing the Fed's balance sheet.
- Hayes emphasized that the quantity of fiat dollars in circulation is crucial for Bitcoin and crypto performance.
- He forecasts Bitcoin could reach $1 million by 2028, driven by ongoing fiscal pressures and increased money printing post-Powell's term in May 2026.
- Hayes allocates 60%-65% of his liquid portfolio to Bitcoin, 20% to Ether, and the rest to select altcoins like Pendle, EtherFi, and Ethena.
- He anticipates a rotation into altcoins when Bitcoin dominance exceeds 70%, projected at BTC prices between $110,000 and $150,000.
- Hayes believes US–China trade relations will not significantly alter the trade gap, predicting a shift towards capital-account measures instead of tariffs.
- A weaker dollar may emerge as a result of these adjustments, further supporting Bitcoin demand.
At press time, BTC traded at $98,827.
