Hayes: Bitcoin Likely to Test $90K Amid Expected Volatility
Former BitMEX co-founder Arthur Hayes suggests Bitcoin may decline towards $90,000 before a potential rise, citing the upcoming “Big Beautiful Bill” lacking a name. Hayes, currently bullish on Bitcoin’s 2025 prospects, warns of market volatility induced by potential Treasury borrowing. He also questions the government’s true interest in stablecoins.
Hayes predicts Bitcoin prices could dip towards $90,000 after briefly surpassing $110,000, a level recently reached. He connects this possibility to President Trump signing recently passed legislation in the near future. Hayes believes the bill, which aims to reduce taxes and raise the debt ceiling, could enable increased U.S. borrowing by the Treasury.
According to Hayes, Treasury Department borrowing would potentially refill its General Account using taxpayer funds, drawing liquidity out of the broader market. He posits this liquidity drain could negatively impact asset prices, including Bitcoin. Nonetheless, Hayes remains fundamentally bullish, suggesting this potential dip would be a short-term interruption in an otherwise long-term upward trend.
In a piece titled “Quid Pro Stablecoin,” Hayes explains his view that government interest in stablecoins stems from reducing the deficit, not alleviating payment system issues. He argues a recently passed Senate bill (GENIUS Act) creating a stablecoin framework might not just hinder private players but empower large banks to use stablecoins indirectly to purchase Treasury bonds.
Hayes previously stated U.S. money printing, typical of loose monetary policy, would ultimately favor Bitcoin. This view aligns with his 2028 price projection of $1 million for Bitcoin, predicated on exodus from U.S. Treasuries.
Currently, Bitcoin trades near $110,000, a slight recovery from losses earlier in the May following its significant all-time high. Hayes’ latest comments emphasize ongoing market caution amidst ongoing scrutiny for events as the potential legislation moves towards presidential signature.
