Bitcoin Dominance May Reach 70% Amid Global Financial Uncertainty

Arthur Hayes, co-founder of BitMEX, has predicted that Bitcoin's dominance in the cryptocurrency market could reach 70% as global financial uncertainty intensifies. In a recent post, Hayes noted that the risk appetite for alternative cryptocurrencies remains low, as Bitcoin is seen as a safer investment option until the Federal Reserve resumes printing money. This move, according to Hayes, is inevitable given the mounting economic pressures.

Hayes' prediction is based on the declining confidence in traditional financial systems. He believes that as trust in these systems wanes, more investors will turn to Bitcoin, driving its market share higher. Currently, Bitcoin commands around 63% of the total crypto market capitalization, its highest share in over four years.

Hayes' views are supported by recent global financial events. Over the past day, stock markets worldwide have suffered significant losses due to the imposition of sweeping tariffs by the Trump administration. This has triggered panic selling, with major stock exchanges posting substantial drops. The crypto market has also not been spared, with over $1.3 billion in crypto positions liquidated in the past 24 hours as traders sought to protect their portfolios.

Hayes has previously argued that the traditional financial system, which has long relied on US dollar dominance, is showing signs of stress. He suggests that if the US current account deficit is eliminated, foreigners may sell US bonds and stocks to fund their own nations' economies. In such a landscape, Hayes sees a growing demand for assets that are detached from national control.

While gold is a classic hedge for nations, Hayes believes that Bitcoin is even more compelling in a decentralized, distrustful world. He suggests that this environment could ultimately push Bitcoin's price towards $1 million as it assumes a more significant role in the evolving global financial system. However, it is important to note that these are forecasts and not guaranteed outcomes. The actual performance of Bitcoin will depend on a variety of factors, including regulatory developments, technological advancements, and market sentiment.