Arthur Hayes has an essential update for crypto enthusiasts watching the evolving trade relations between the U.S. and China:
“The real show is at the Treasury Department. Ignore the Fed. It doesn’t matter.”
Translation: “The Treasury Department’s actions are pivotal. The Federal Reserve’s influence is negligible.”
In a noteworthy interview with CoinDesk, Hayes stated that the U.S. Treasury, rather than the Federal Reserve, plays a crucial role in shaping the liquidity landscape for Bitcoin’s future. He forecasts that Bitcoin could soar to $1 million by the year 2028 due to enhanced liquidity and significant geopolitical factors.
Key Insights:
- Hayes suggests that upcoming U.S.-China trade deals will yield little meaningful change, despite their significant appearance.
- The strategy from the U.S. Treasury, under Treasury Secretary Scott Bessent, focuses on buybacks and auctions that aim to address the surging U.S. debt crisis.
Hayes indicated that this surge in liquidity, coupled with the challenges of curbing government spending, is critical in propelling Bitcoin towards the $1 million mark.
“All we care about is whether there are more dollars in the system today than yesterday,” Hayes asserted.
Translation: “Economic projections rely heavily on daily increases in money supply.”
He also highlighted that geopolitics play a considerable role in these developments, particularly with respect to the ongoing performative trade negotiations between the U.S. and China.
“It’s going to be a deal on the surface,” he noted, addressing the political motivations of both nations.
Translation: “Agreements will be publicly appealing but will lack substantive economic impact.”
Ultimately, Hayes believes that foreign investment taxation and capital controls may be employed as new strategies to restructure trade and economic relations without altering domestic consumer habits.
Arthur Hayes
As for investment allocations, Hayes maintains a significant stake in Bitcoin and other influential cryptocurrencies, indicating the market’s emerging preference for projects with real utility.
