The United States is unlikely to actively increase its reserves in the leading cryptocurrency, suggested BitMEX co-founder Arthur Hayes.
The expert expressed doubt that digital reserves would significantly exceed the ~200,000 BTC (~$19.8 billion) already in their possession—mostly assets seized in criminal investigations, including the Silk Road case.
Hayes cited two key reasons for his stance: the rapidly growing national debt and the cultural image of Bitcoin investors, which does not fit within the traditional political agenda.
“Especially when the rhetoric is popular—it’s a bunch of Bitcoin bros going to the club […]. Do you want people to perceive your policy this way?” the expert shared his thoughts.
According to him, no “properly elected” official could convincingly explain why to print money to purchase a volatile digital asset.
“The United States is a deficit country,” Hayes emphasized. “The only way for them to create a strategic reserve is not to sell the bitcoins they have taken from people. Okay, that’s 200,000 BTC.”
Back to Square One
In the context of the cryptocurrency market, Hayes is convinced of the return of Bitcoin’s dominance index to pre-2021 levels—around 70%. This will signal the resumption of the boom-bust cycle, accompanied by an altcoin rally.
“Bitcoin is back at record levels; bull markets are returning, and altcoins should perform better. ‘Should’ is the key word. It all depends on what exactly you buy,” he said.
At the time of writing, Bitcoin’s dominance index stands at 64%, according to CoinMarketCap.
Hayes is firmly convinced that the leading cryptocurrency will reach the $1 million mark by 2028.