BitMEX Co-Founder Predicts Bitcoin Drop to $90,000-$95,000 Amid US Treasury Moves

Arthur Hayes, the co-founder of BitMEX, has shared his latest predictions regarding Bitcoin, suggesting that the cryptocurrency market may experience a sideways or slightly bearish trend until the Jackson Hole conference in August. Hayes believes that investors should focus on purchasing US bonds instead of Bitcoin, as the US government's recent support for stablecoins is aimed at strengthening traditional banks and replenishing the Treasury, rather than benefiting fintech companies.

Hayes argues that the US Treasury Department is exploring new methods to sell trillions of dollars in bonds and replenish the Treasury without causing interest rates to rise. This has led to the consideration of stablecoins as an alternative buyer. However, Hayes warns that the issuance of stablecoins by US banks could provide a purchasing capacity of $6.8 trillion, potentially leading to new liquidity in the market and a subsequent increase in Bitcoin prices. Nevertheless, in the short term, Hayes predicts that Bitcoin could drop to the $90,000 to $95,000 range if the efforts to refill the US Treasury and sell bonds negatively impact USD liquidity.

Hayes also notes that the US government's liquidity and stablecoin game could negatively affect altcoins. In response to this potential market impact, Hayes' company, Maelstrom, has sold all of its illiquid altcoin positions and is considering reducing its Bitcoin holdings based on market performance. This strategic move underscores the potential risks and uncertainties in the cryptocurrency market, as Hayes anticipates a challenging period ahead for both Bitcoin and altcoins.