Bitcoin Soars Toward $100,000 As Treasury, Not Fed, Drives Liquidity: Expert
Arthur Hayes, co-founder of BitMEX, asserts that the US Treasury is the primary driver of the current bull market in risk assets, including Bitcoin. He advises traders to focus on Treasury announcements rather than Federal Reserve actions, claiming that Fed Chair Jerome Powell's influence is minimal. Hayes attributes the market rally to a liquidity shift initiated by former Treasury Secretary Janet Yellen, which redirected excess cash from the Fed into global markets. He anticipates that Treasury Secretary Scott Bessent's authority for buybacks will further support this dynamic. Hayes believes Bitcoin's performance hinges on the amount of fiat dollars in circulation, predicting it could reach $1 million by 2028 due to increasing fiscal pressures. Currently, he allocates 60%-65% of his portfolio to Bitcoin and 20% to Ether. He expects a rotation into altcoins when Bitcoin dominance exceeds 70%. Hayes also views the US-China trade relationship as unlikely to change significantly, predicting a weaker dollar as a consequence of evolving trade measures. Bitcoin is currently priced at $98,827.
