Bitcoin May Be on the Verge of a Historic Rally, According to Crypto Veteran Max Keiser

Bitcoin may be on the verge of a historic rally, according to crypto veteran Max Keiser, who predicts that the leading cryptocurrency could surge past $200,000.

Crypto veteran Max Keiser is sounding the alarm about stablecoins, warning that their rapid growth could have unintended consequences for both Bitcoin adoption and the U.S. economy.

In a recent interview, Keiser, a long-time Bitcoin advocate and broadcaster, expressed his belief that while stablecoins have become central to the digital asset ecosystem, they may be fueling a quiet shift in global financial power—one that could ultimately weaken the U.S. dollar.

Stablecoins, which are typically backed by reserves of U.S. Treasuries, have surged in popularity due to their promise of stability amid crypto market volatility. But Keiser argues that this very stability may be misleading governments and investors about the true state of the economy.

According to Keiser, issuers of stablecoins like Tether (CRYPTO: USDT) are using the interest earned from their U.S. Treasury holdings to buy Bitcoin while it remains relatively cheap. He claims that this quiet accumulation is setting the stage for a dramatic price surge in Bitcoin, while also distorting demand for the dollar.

As he sees it, the rising popularity of stablecoins is masking growing vulnerabilities in traditional fiat systems.

“The U.S. Treasury is saying that stablecoins could reach $2 trillion by 2028 and that they’re going to be buying up all the U.S. Treasuries,” Keiser said.

This concern comes as the stablecoin market continues to expand at an unprecedented rate. Tether remains the largest stablecoin in circulation, but new entrants are gaining traction, including USD1 (CRYPTO: USD1).

Recently introduced and linked to the Trump-backed World Liberty Financial (OTC:WRLD) platform, USD1 has quickly passed the $2 billion market cap mark, signaling strong investor interest.

Projections from the U.S. Treasury suggest that the stablecoin market could reach $2 trillion by 2028, underscoring its growing role in global finance.

However, Keiser believes this trajectory could derail efforts to secure national Bitcoin holdings. He has long advocated for the creation of a U.S. Strategic Bitcoin Reserve, a move he sees as essential for maintaining economic strength in a digital future.

But he feels that political leaders may be distracted by the perceived safety of stablecoins and are missing the bigger picture: Bitcoin’s long-term dominance.

“The administration is focused on the dollar and doesn’t want to lose the dollar’s reserve currency status, which they’re tying to stablecoins,” Keiser added.

According to his predictions, once Bitcoin crosses the $200,000 threshold, panic buying will likely follow.

Governments and individuals who once trusted stablecoins as a safer alternative to volatile crypto assets may suddenly rush into Bitcoin, driving prices even higher.

Going further, Keiser suggests that Bitcoin could eventually reach $2.2 million per coin, fueled by institutional competition and global demand. While such a forecast might sound extreme, he points to ongoing accumulation by firms like MicroStrategy (NASDAQ:MCRI) and newer entities like 21 Capital as evidence that the race for Bitcoin dominance is already underway.

The interviewer, Mark Melos, also noted that Bitcoin’s market dominance has climbed to its highest level in years, even as short-term volatility continues. The cryptocurrency recently dipped below $95,000.

In the broader context, Keiser's warnings about stablecoins and Bitcoin come at a critical juncture for the U.S. financial system. With the dollar facing pressure from both internal and external factors, policymakers are grappling with how to maintain the greenback's strength in a rapidly changing global economy.

According to a report by the U.S. Treasury, the stablecoin market is expected to grow significantly in the coming years, potentially reaching a total of $2 trillion by 2028.

This growth trajectory is being driven by several factors, including the increasing demand for digital assets and the potential for stablecoins to serve as a bridge between traditional and decentralized finance.

However, this rapid expansion also poses challenges for the U.S. financial system. As stablecoins become more widely used, they could begin to compete with the dollar, potentially diverting liquidity and reducing the demand for Treasury securities.

Moreover, the stability of stablecoins depends on the issuers' ability to maintain a deep and liquid market for their tokens, which could be threatened by a sudden and massive outflow of funds.

In the worst-case scenario, a large-scale collapse of the stablecoin system could trigger a broader financial crisis, especially if a significant portion of the U.S. financial system becomes entangled in the cryptocurrency domain.

In the meantime, as the cryptocurrency market continues to evolve, it will be crucial for policymakers to closely monitor the developments in the stablecoin sector and adjust their strategies accordingly to mitigate potential risks and maximize the opportunities presented by this new technological innovation.