Arthur Hayes Forecasts Crypto Stagnation: Flat or Slight Dip
The post Arthur Hayes Forecasts Crypto Stagnation: Flat or Slight Dip appeared on BitcoinEthereumNews.com.
Key Notes Hayes predicts a short-term Bitcoin drop to $90,000 amid market volatility. US bank-issued stablecoins could unlock trillions in liquidity for Bitcoin and Treasuries. Bitcoin is currently trading just below $110,000, up by 1.85% in the past day. Bitcoin BTC $109 723 24h volatility: 1.4% Market cap: $2.18 T Vol. 24h: $41.36 B could continue to consolidate and may even see a drop to the $90,000–$95,000 range before resuming its upward trajectory, according to former BitMEX CEO Arthur Hayes. In his latest blog post, Hayes argues that while a correction may disturb traders in the short term, it could pave the way for a powerful rally fueled by US bank-issued stablecoins. Hayes noted the mounting challenges faced by the US Treasury amid record debt issuance. He believes the Treasury will eventually need to tap new liquidity sources to prevent interest rates from spiking. Hayes predicts that fully regulated stablecoins, such as one recently announced by JPMorgan, could absorb idle retail deposits and bank reserves, turning them into demand for short-term Treasury bills. He suggests that this process could inject liquidity into markets, similar to quantitative easing but without requiring direct action from the Federal Reserve. Stablecoin Regulation Progresses The forecast aligns with the growing momentum in Washington around stablecoin regulation. Just last month, the Senate passed the GENIUS Act with broad bipartisan support. Hayes argues that this regulatory clarity will allow traditional banks to leverage their vast retail networks and Fed access to convert deposits into stablecoins seamlessly. He estimates that if even a portion of the $17 trillion in US bank deposits were moved into stablecoin products, it could unlock around $6.8 trillion in new demand for Treasury debt. This influx could then funnel liquidity into risk assets like Bitcoin. “Quid Pro Stablecoin” is a discussion on how…
Filed under: News - @ July 3, 2025 3:29 pm