BitMEX co-founder Arthur Hayes is still extremely bullish on Bitcoin, but he believes the apex crypto could briefly plunge and retest $90,000 levels this year if President Trump’s Big, Beautiful spending bill is signed into law.

In a July 2 blog post entitled “Quid Pro Stablecoin,” the African-American crypto billionaire said that the president’s budget mega-bill — which aims to slash taxes and increase the debt ceiling — could result in the U.S. Treasury borrowing more.

The bill cleared Congress on July 3 after passing the House of Representatives on a narrow 218-214 vote. Notably, financial analysts estimate that the bill could increase the national debt by $3.3 trillion over a decade.

President Trump is expected to sign the bill into law on Independence Day.

“Proceed With Caution”

Hayes argued that the Treasury would refill its General Account, causing a potential liquidity drain from markets — and in turn impacting the price of assets such as Bitcoin.

This drain, estimated to be about $500 billion, could temporarily drag Bitcoin’s price to the $90,000 to $95,000 range. “Proceed with caution,” Hayes posited, adding that “the bull market might be interrupted for a short period of time.”

Bitcoin was trading for $109,025 per coin at publication time after barely moving over the past 24 hours. The crypto is up over 1.9% in the last seven days, according to data from CoinGecko, and is still 2.6% away from its May historic high of $111,814. 

Despite potential short-term correction, Hayes — now the chief investment officer at the VC firm he co-founded, Maelstrom Fund — remains upbeat about Bitcoin’s long-term price action, suggesting that a smooth market absorption of the bond issuance could keep Bitcoin stable above $100,000.

The former BitMEX CEO previously predicted that the U.S. central bank’s monetary policy, specifically money printing, would eventually be a boon for Bitcoin and other crypto assets.

Earlier last month, Hayes forecasted that Bitcoin would skyrocket in the coming months to smash $250,000 before the end of 2025. The rocket surge will be bolstered by the U.S. Federal Reserve accelerating money printing to curtail the ballooning national debt.

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Filed under: Bitcoin - @ July 4, 2025 5:20 pm