Bitcoin Poised for New Highs as US Policies Boost Crypto Market

Arthur Hayes, the co-founder of BitMEX, has shared his bullish outlook on the Bitcoin market, predicting that the cryptocurrency is poised to reach new all-time highs. Hayes attributes this potential surge to favorable regulatory changes in the United States, which he believes are setting the stage for a significant rally in the crypto market.

One of the key factors Hayes highlights is the U.S. Treasury’s Supplementary Leverage Ratio (SLR) exemption. If reinstated, this policy would allow banks to hold more capital, enabling them to invest in stablecoins and crypto-related assets with fewer restrictions. This would increase liquidity, provide stronger institutional support, and facilitate the integration of crypto with the traditional financial system, signaling the start of a new bull cycle.

Another crucial piece of the puzzle is the proposed Genius Act. This legislation aims to shift control of the U.S. stablecoin market to banks, a move that Hayes believes will bring legitimacy and stability to stablecoins. By making stablecoins a trusted part of the financial system, this could boost confidence in Bitcoin and the broader crypto market.

Hayes also advises investors to disregard political noise and focus on the strong market fundamentals. He points out that world leaders are often caught up in geopolitical tensions, but investors should look past the headlines and concentrate on market signals. According to Hayes, the 22% surge in the stablecoin market cap this year, reaching $251 billion, is a strong indicator that capital is flowing back into crypto and that investors are positioning for a run.

Hayes’s view aligns with his past commentary, where he has connected crypto market trends with global economic policy. He has previously written about the impact of central banks, such as the Bank of Japan, on risk assets like Bitcoin. As macro conditions shift and regulators appear more open to crypto, Hayes sees all signs pointing to another breakout moment for Bitcoin.

With policies like the SLR exemption and the Genius Act bringing crypto and traditional finance closer together, Hayes believes Bitcoin is primed for substantial gains. While stablecoins may be laying the groundwork, Hayes argues that Bitcoin is the real beneficiary. If his prediction holds true, the cryptocurrency market could be entering a new phase of adoption, with Bitcoin leading the charge toward another all-time high.