Arthur Hayes: Stablecoins are a new fiscal weapon that may bring trillions of dollars of liquidity support to Bitcoin in the future
Odaily News Arthur Hayes, co-founder of BitMEX, recently wrote that the U.S. Treasury Department’s support for the issuance of stablecoins by large banks in the TBTF is one of its key policies to deal with the huge fiscal deficit and national debt pressure. He believes that this will release the purchasing power of up to $6.8 trillion in short-term Treasury bonds (T-bills) and drive financial markets up.
At the same time, if the Fed stops paying interest on bank reserves (IORB), it will release an additional $3.3 trillion in funds into the Treasury market. Arthur Hayes said that although this policy combination is not quantitative easing (QE) in the traditional sense, it will have the same upward momentum for fixed supply assets such as Bitcoin.
He predicted that after the passage of Trumps spending bill and the increase in the debt ceiling, the U.S. Treasury will issue bonds to replenish the Treasury Account (TGA), which may suppress market liquidity in the short term. Bitcoin may consolidate around $100,000, and the low point of the correction may be between $90,000 and $95,000. However, after liquidity is restored in early September, a new round of increases will begin.
Arthur Hayes concluded that the real stablecoin narrative lies not in FinTech companies, but in the financial weaponization innovation of TBTF banks using stablecoins to reconstruct compliance, costs, and the purchasing power of government bonds. He advised investors to go long on Bitcoin and JPMorgan Chase and embrace this new liquidity cycle led by the Treasury Department.
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