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- Arthur Hayes doubts Trump’s crypto reserve plan, saying it lacks congressional approval for borrowing or revaluing gold.
- Hayes remains bullish on crypto but warns of upcoming market challenges before a potential recovery.
President Donald Trump’s proposal to establish a US Crypto Reserve has sparked debate in the cryptocurrency industry. Officially announcing the strategy, as per the CNF report, Trump included Bitcoin, Ethereum, XRP, Solana, and Cardano. Mixed responses have come from Arthur Hayes, co-founder of BitMEX, who answered with skepticism.
“Just Words,” Arthur Hayes Says
Trump’s declaration did not instantly grab Arthur Hayes. He took the remark as only rhetoric devoid of any specific action.
For him, the US government lacks the means to purchase Bitcoin and altcoins in great numbers without congressional authority to borrow money or raise the price of gold. Stated differently, Trump’s promise resides still in the theoretical domain.
Nothing new here. Just words. Lmk when they get congressional approval to borrow money and or revalue the gold price higher. Without that they have no money to buy #bitcoin and #shitcoins. https://t.co/Q06cDtL6h7
— Arthur Hayes (@CryptoHayes) March 3, 2025
Though he is dubious, Hayes still sees great optimism for Bitcoin and the crypto sector overall. Still, he underlined that right now is not the best moment for him to raise his digital asset accumulation. Although he sees long-term possibilities, his comment emphasizes the need of considering political and economic aspects before deciding on any significant action.
Political Risk and Its Impact on the Market
The political risk Trump presents worries Hayes about one thing. He cautioned that unknown policies of Trump could cause pressure on Bitcoin values. Actually, he claimed that hedge fund sell-offs might cause Bitcoin’s price to collapse to $75,000 or $70,000. Investors trying to read market moves based on political dynamics should give this condition top attention.
Hayes also presented a fascinating theory on the approach the Trump government should follow. He said the US government should first think about devaluating gold if they truly wish to create Bitcoin reserves. This action will allow the Bitcoin space to establish a more dominant global reserve asset posture.
Bitcoin as a Global Asset: Is It Possible?
Besides, Hayes contends that the world financial system has to be rebuilt. He suggested that the US dollar stay the primary currency used in trade deals while Bitcoin should be considered a neutral global reserve asset. He believes that this could help to solve more difficult economic issues.
Still, several actions have to be taken if we are to bring about this. One of them is to progressively raise the value of Bitcoin with the help of suitable economic measures.
Furthermore, encouraged should be a digital push to support the digital dollar and the periods of the US Treasury bonds should be prolonged. Also, there should be blockchain-based financial infrastructure to be more fit for the worldwide system.
A Tough Road Ahead for Crypto, but Hope Remains
According to Hayes, the crypto sector will present significant difficulties in not too distant future, even if the long-term possibilities of Bitcoin remain appealing. In the early months of 2025, he projects a significant drop. This will be a test for investors to find out whether Bitcoin and other cryptocurrencies can actually withstand as reserve assets in this new age.
Still, hope exists. After this adjustment period, Hayes thinks the crypto market will climb once again with fresh vitality. Watching this is really fascinating, particularly for those who believe Bitcoin will shape world banking going forward.
