BitMEX co-founder Arthur Hayes pours cold water on hopes of a United States Bitcoin reserve

Arthur Hayes, known for bold takes, believes the US government may not buy Bitcoin for a strategic reserve, not because it lacks value, but because of politics and perception.

This article is based on a conversation with Arthur Hayes, co-founder of BitMEX, on X (formerly Twitter).

The U.S. is unlikely to create a Bitcoin reserve despite Donald Trump’s promises, and any hopes of a Trump-fueled crypto bull market may be dashed by midterms, predicts BitMEX co-founder Arthur Hayes.

In a recent post on X, Hayes responded to a user who asked about the chances of the U.S. government buying Bitcoin to add to its strategic reserve. The co-founder of the cryptocurrency exchange BitMEX said the odds were slim.

He explained that the U.S. can’t justify printing money to buy Bitcoin while already planning to monetize some of its assets to reduce the national debt.

"Even if we assume that elected officials in the U.S. can be persuaded to approve such a move, consider the public image of the "Bitcoin bros" partying at clubs vs. the image of politicians needing to justify their actions to constituents."

Moreover, Hayes noted that the U.S. has already collected around 200,000 BTC from criminal cases, which is an amount that could grow organically. However, he doesn’t believe that the holding will grow intentionally.

"I think the chances of the U.S. government buying Bitcoin to add to its strategic reserve are slim to none. It's not a question of whether Bitcoin has value or not, but rather a matter of political will and public perception," Hayes wrote.

Trump, who recently signed an executive order to create a strategic digital asset reserve and a president’s working group on crypto, might struggle to deliver on his promises.

With only 12 months before midterms, there isn’t time to enact real change.

"People are impatient because they're desperate. Disappointment will bring forth the sword of correction on Bitcoin and other "Trump trades', slashing deeply and swiftly."

However, Hayes remains bullish on Bitcoin in the long run. He expects the U.S. dollar to be devalued significantly as part of Trump’s broader economic plan, possibly using gold as a reference point for the dollar’s new value. This devaluation would make Bitcoin more attractive to people around the world.

Hayes also believes that a major crypto boost could come from China if Hong Kong ETFs open up to mainland investors, and even suggests that E.U. governments may secretly buy crypto as inflation bites.

While he predicts that Bitcoin could hit $1 million by 2028, Hayes stressed that the path will be tough to attain. In the meantime, his playbook for a Bitcoin-led altcoin cycle remains the same, despite other analysts doubting that it’ll repeat like 2021.

The post BitMEX Co-Founder Slams Hopes Of U.S. Bitcoin Reserve, Predicts Trump-Tied Sell-Off appeared first on Benzinga.