Arthur Hayes: U.S. Reluctance to Buy Bitcoin Due to Debt and Political Risks

Arthur Hayes, the co-founder of BitMEX, has suggested that the United States is unlikely to significantly increase its reserves of the leading cryptocurrency.

The expert expressed doubts that the nation’s digital holdings would extend far beyond the approximately 200,000 BTC (around $19.8 billion) already in their possession, which mainly consists of assets seized during criminal investigations, including cases related to Silk Road.

Hayes provided two main arguments to support his viewpoint: the rapidly increasing national debt and the cultural image of Bitcoin investors that doesn’t fit into the traditional political agenda.

He stated that no «properly elected» official would be able to convincingly justify printing money to acquire a volatile digital asset.

In the realm of cryptocurrency, Hayes is confident that Bitcoin’s market dominance will revert to pre-2021 levels, hitting around 70%. This shift is expected to signal the revival of a «boom-bust» cycle, coupled with altcoin rallies.

At the time of writing, Bitcoin’s dominance index stands at 64%, according to CoinMarketCap.

Additionally, Hayes is firmly convinced that the first cryptocurrency will reach the milestone of $1 million by 2028.