BitMEX co-founder Arthur Hayes has mentioned that the United States government will likely not print money to purchase BTC. Hayes mentioned that he has doubts about whether the amount of Bitcoin in the reserves will go beyond what has already been seized due to the country’s debt levels.
Arthur Hayes revealed his stance while speaking to Kyle Chasse on his crypto interview series . He mentioned that aside from the debt levels, there is also a stereotype behind “Bitcoin bros.”
“I’m not really into the whole Strategic Reserve situation,” Hayes said in the interview. “The United States is a deficit country; the only way they can do a Strategic Reserve is not sell the Bitcoin they took from people, fine, that’s 200,000 Bitcoin,” he added.
Arthur Hayes discusses the United States’ Bitcoin reserve
According to Arthur Hayes, it is hard to imagine that an elected politician will openly announce that the government will print money to purchase Bitcoin. He added that it will probably not happen, especially if the narrative is a bunch of Bitcoin bros going to the club. “Is that really what you want people to think about your policy?” he asked.
The statement came after United States President Donald Trump signed an executive order to create a Bitcoin strategic reserve and digital asset stockpile. According to the statement at the time, the reserve will be capitalized by Bitcoin owned by the federal government through forfeiture or civil asset forfeiture proceedings.
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In addition, the stockpile, according to White House AI and crypto Czar David Sacks, will be made up of Bitcoin and other digital assets.
The Bitcoin reserve was primarily formed from Bitcoin seized from high-profile criminal and civil cases, with significant amounts coming from the Silk Road and Bitfinex hack cases.
According to recent data, the United States currently owns 198,012 Bitcoins, worth over $18 billion. At the time, Sacks said the Bitcoin reserve was a digital Fort Knox for digital assets, noting that the US has no plans to sell Bitcoin that is moved into the reserve.
“It will be kept as a store of value,” he added.
Hayes is confident in Bitcoin to altcoin rotation
Many crypto industry leaders share the same sentiment as Arthur Hayes, with most of them noting that the US government could set off a domino effect if it starts buying Bitcoin.
Co-founder of exchange aggregator 1inch Sergej Kunz mentioned that if the United States starts to purchase Bitcoin for its strategic reserve, smaller countries will start struggling to acquire the digital asset. “I’m pretty sure we’ll soon see countries battling over who owns more Bitcoin. The US will start,” he said.
Meanwhile, Arthur Hayes has maintained his stance that the Bitcoin cycle leading to the altcoin season will follow the same pattern as it did in 2021, despite other analysts holding different views. “I personally think Bitcoin dominance is going back to where it was before the 2021 altcoin season, which is about 70%,” he said.
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He added that he is not convinced enough that the pattern will change, noting that people will just start rotating. Arthur Hayes mentioned that it will head back to all-time highs with the bull market returning and altcoins outperforming.
Bitcoin dominance, the ratio of Bitcoin’s market cap compared to other assets in the market is around 64%, representing an 11% increase since January 1. During the period, Bitcoin was above 60% in dominance, with analysts predicting that it is the peak before the altseason. Some analysts have also doubted that Bitcoin dominance will return to 70%, with Into The Cryptoverse founder Benjamin Cowen, part of the skeptics, noting that his target for Bitcoin dominance is around 60%.
CryptoQuant CEO Ki Young Ju also added that the altseason is no longer defined by asset rotation to Bitcoin.
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