Bitcoin Surges 10% to New All-Time High Above $118K as Hayes Turns Bullish

Bitcoin has recently surpassed its previous all-time high, reaching a new peak above $118K. This significant milestone has garnered attention from key figures in the cryptocurrency industry, notably Arthur Hayes, the co-founder of BitMEX. Hayes, who was previously cautious about the market, has now adopted a bullish stance, signaling a strong belief in Bitcoin's continued price appreciation. His investment vehicle, Maelstrom Fund, is reportedly "backing up the truck," indicating a substantial investment in Bitcoin. This shift in sentiment comes as Bitcoin has been experiencing a period of sustained price growth, driven by factors such as increased institutional interest and growing acceptance as a legitimate asset class. Hayes' bullish outlook is likely to influence other investors, potentially driving further demand for Bitcoin.

Hayes' pivot to a bullish stance follows his earlier concerns about the Treasury General Account (TGA) refill draining liquidity. In a previous essay, he discussed the challenges faced by the US Treasury Secretary in managing ballooning deficits without causing a bond market revolt. The government's innovative liquidity engineering, including stablecoin adoption by "too big to fail" banks, could unlock significant T-bill buying power. Hayes also noted that if the Fed stops paying interest on reserves, it could unleash additional liquidity, bringing the total potential injection to $10.1 trillion. Despite these concerns, Bitcoin's resilience in breaking through resistance levels and Ethereum's potential for outperformance suggest a strong market momentum.

Adding to this backdrop, QCP Capital identified frontloading ahead of potential Trump tariffs as a key macro driver. Manufacturers are accelerating imports and production to preempt implementation, leading to increased trade and manufacturing credit and improved liquidity conditions. This environment is viewed as supportive for continued crypto upside, with steady ETF inflows and strong structural demand boosting momentum. The current market conditions, coupled with Hayes' bullish sentiment, indicate a positive outlook for Bitcoin and the broader cryptocurrency market.