BitMEX Founder Arthur Hayes Says U.S. Treasury Is Steering Bitcoin Market Gains

On May 21, CNBC Arabia’s Henri Arslanian shared a new interview with BitMEX Founder Arthur Hayes on X. In that conversation, BitMEX Founder Arthur Hayes offered a new view on crypto markets. He said the United States Treasury, not the Federal Reserve, fuels recent Bitcoin gains. This claim challenges the common belief that central bank decisions drive asset prices. Hayes argued that Treasury actions reintroduced liquidity into financial markets earlier this year. He linked that liquidity to rising values throughout global markets, including digital currency. His insight shifts focus away from Fed balance sheets toward fiscal policy influence.

Treasury’s Bill Issuance Strategy Linked to Market Liquidity Surge

According to Hayes, April 9 marked a key bottom in market sentiment worldwide. He connected that date to political shifts away from aggressive trade policies. Many investors still await clear signals of rate cuts or more easing measures. He warned that such a focus can cause investors to miss early signs of recovery. Hayes compared today’s hesitation to 2022 conditions when doubt slowed asset rebounds. That period saw hesitant trading that delayed gains across many asset classes. BitMEX Founder urged investors to watch fiscal steps, not just central bank announcements.

Hayes pointed to recent shifts in how the Treasury issues and manages bills. He said issuing bills at slightly higher rates released funds from reverse repos. Those funds returned to markets instead of sitting in Fed reverse repo programs. He claimed that the injection of liquidity lifted prices across gold, stocks, and Bitcoin. This action, he argued, supported noticeable Bitcoin gains throughout this spring period. Hayes noted the Fed did not expand its own balance sheet during that shift. He said this process highlights the power of fiscal moves over monetary tools.

Hayes Predicts Bitcoin ETFs Will Drive Broader Digital Asset Adoption

Looking ahead, Hayes expects digital currency to lead the next wave of flows. He said institutions often choose familiar products when entering the crypto market. According to Hayes, Bitcoin ETFs are more regulated and easier for many buyers. Hayes added that ETFs avoid technical hurdles like private key management for investors. This accessibility, he noted, could drive greater interest and broader market participation. As such, this trend will strengthen confidence in digital asset investing overall. Electing ETFs as entry points may shape the structure of future crypto allocations.

Hayes projects Bitcoin might climb toward $150,000 to $200,000. He tied this forecast to continued global financial uncertainty and policy measures. In his view, Bitcoin gains reflect deeper shifts in how money policy works. Hayes expects that reaching those levels could spark delayed interest in alternative coins. Retail investors often wait for big moves before joining smaller asset classes. In his view, confidence will rise after Bitcoin hits new highs this year. That shift could lead to broader altcoin adoption as sentiment turns positive.

Perpetual Swaps as a Turning Point in Trading Flexibility

Hayes also reviewed past global innovations in crypto derivatives markets. He credited his team’s launch of perpetual swaps for solving key liquidity problems. These contracts became the most traded derivatives due to their efficiency and flexibility. Initially, they resisted; they gained wide use as traders sought constant market exposure options. Looking forward, he sees decentralized exchanges as the next step in trading innovation. He argued these platforms could offer broader access while respecting core Bitcoin principles. Such developments, he believes, align with the ethos of open financial systems.

Arthur Hayes Calls for Innovation-Friendly Crypto Regulations

BitMEX Founder Arthur Hayes also urged regulators to encourage innovation over strict restrictions. He compared crypto regulation needs to the internet rules of the mid-nineteen-nineties. Hayes cited the 1996 Communications Decency Act as an example of legal protection. That law helped internet developers without exposing them to immediate lawsuits. He believes a similar framework could spur major crypto growth in the United States. However, he warned that political uncertainty may delay such progress without clear rules. He said lasting regulatory clarity is vital for the sector’s long-term stability.