Crypto markets are bracing for turbulence as former BitMEX CEO Arthur Hayes warns of a potential pullback in Bitcoin’s price.
Despite Bitcoin briefly topping $110,000, Hayes believes a temporary drop to $90,000 is still possible once President Trump signs the newly passed economic bill into law.
The bill, which includes both tax cuts and a higher debt ceiling, is expected to push the U.S. Treasury into another round of heavy borrowing — potentially draining liquidity from risk assets like Bitcoin.
Hayes explains that the Treasury’s move to replenish its cash reserves could briefly suck capital out of the system, creating short-term downward pressure on crypto. However, he views this as a pause, not a reversal. In his view, the bull cycle remains intact, and Bitcoin is poised to resume its climb once the market adjusts to the influx of new debt.
Beyond market mechanics, Hayes raised a larger issue: the growing convergence of crypto and U.S. fiscal policy. He believes stablecoins could become key tools for the government, used by large banks to absorb Treasury bills as part of a broader strategy to manage national debt.
In this scenario, control over stablecoin issuance may shift away from private firms to regulated financial institutions.
While Hayes cautions investors to prepare for short-term volatility, he remains convinced of Bitcoin’s long-term strength. He maintains that macroeconomic forces — like money printing and declining trust in traditional finance — continue to support the case for BTC potentially hitting $1 million by the end of the decade.
