Arthur Hayes, a co-founder of Bitmex, expressed skepticism about the likelihood of the U.S. adding Bitcoin to its reserves, citing the country’s significant debt levels and the stereotypes surrounding what he calls the “Bitcoin Brothers.” In a May 1 interview, he stated, “I’m not really into the whole strategic reserve situation.”
Hayes questions Bitcoin acquisition strategies
He pointed out that the U.S. operates with a deficit and suggested that any strategic preparation could involve not selling the Bitcoin currently confiscated from individuals.
Hayes also noted how challenging it would be for a “properly elected” politician to announce any plans for the government to print money to acquire Bitcoin, especially with the prevailing narrative of young Bitcoin enthusiasts enjoying nightlife. “Is that really something you want people to associate with your policy?” he questioned.
Earlier this year, President Donald Trump signed an executive order aiming to create a strategic Bitcoin reserve in the U.S., which currently holds over $18 billion in Bitcoin sourced mainly from law enforcement actions, including cases tied to the Silk Road and Bitfinex hacks.
Interestingly, many leaders within the crypto sector believe that if the U.S. were to start purchasing Bitcoin, it could trigger a positive ripple effect. For instance, Sergej Kunz, co-founder of Exchange Aggregator 1Inch, mentioned at a Dubai event that smaller countries could find it challenging to acquire Bitcoin if the U.S. begins making strategic purchases.
Hayes on Bitcoin’s potential trajectory
Despite differing opinions, Hayes is optimistic that Bitcoin’s cycle will mirror the patterns observed in 2021, following the altcoin season. “I think Bitcoin’s share is back to where it was pre-2021 altcoin season, about 70%,” he asserted.
https://www.youtube.com/watch?v=oqemr3g8dai
He also added, “Then people just started spinning. It’s back to an all-time high. The bull market is here. Altcoins will likely outperform, but it hinges on what you choose to invest in.”
Currently, Bitcoin makes up 64.78% of the crypto market’s total capitalization. Since the beginning of the year, Bitcoin’s share has grown from just under 60%, indicating an increase of 11.68%.
While some analysts predict that Bitcoin’s market dominance could revert to 70%, one skeptic expressed doubts in August, stating they “don’t think we’ll reach 70% again,” contrasting with another viewpoint that positions it around 60%. Meanwhile, in December, Cryptoquant’s CEO pointed out that the old signals defining altcoin seasons, such as migrating funds from Bitcoin to altcoins, are becoming irrelevant. He observed a shift towards trading volumes involving stablecoins and fiat currency pairs instead.
