Bitcoin’s $100K Surge: Treasury, Not Fed, Drives Market, Says Expert

Arthur Hayes, BitMEX co-founder, claims the US Treasury, not the Federal Reserve, is the primary driver of the current Bitcoin bull market. He argues that the Treasury's actions, such as shifting issuance toward short-dated Treasury bills in 2022, injected liquidity into global markets, boosting assets including Bitcoin. Hayes dismisses Federal Reserve Chair Jerome Powell's influence, suggesting traders should focus on Treasury announcements instead, particularly those related to Secretary Scott Bessent's newly granted buyback authority. Hayes's theory centers on the quantity of fiat dollars in circulation; increased dollar supply directly benefits Bitcoin and cryptocurrencies, regardless of other economic factors like price stability or the US Dollar Index. This perspective underpins his long-term prediction of Bitcoin reaching $1 million before 2028, citing rising US national debt and anticipated increases in money printing. Hayes's investment strategy reflects this belief, with 60-65% of his liquid portfolio in Bitcoin, 20% in Ether, and the rest in “quality shitcoins” like Pendle, EtherFi, and Ethena. He anticipates a rotation into altcoins once Bitcoin dominance surpasses 70%, likely at a price range of $110,000-$150,000. Hayes also believes the US-China trade conflict will continue, with the US using capital-account measures rather than tariffs to manage trade flows. This, he suggests, will lead to a weaker dollar, further fueling Bitcoin's price appreciation. Currently, Bitcoin is trading near $98,827, according to the article.

(Source: https://www.newsbtc.com/bitcoin-news/bitcoin-soars-as-treasury-not-fed-drives-liquidity/)