BitMEX founder Arthur Hayes expressed serious doubts about the possibility of the US replenishing its Bitcoin reserves beyond what has already been confiscated. The reason for this is the enormous national debt and the negative image of typical cryptocurrency enthusiasts in the public consciousness.
"I don't really believe in this whole strategic reserve situation," Hayes stated in an interview on May 1.
A printing press for Bitcoin? Forget it!
"The US is a country with a budget deficit. The only thing they can do for a strategic reserve is not to sell the Bitcoin that they have confiscated from people. Well, that's 200,000 Bitcoins," he explained.
According to Hayes, it is hard to imagine any 'properly elected' politician openly announcing plans for the government to print money to buy Bitcoin.
"Especially when the image of a bunch of Bitcoin enthusiasts hanging out in nightclubs has taken root in the public consciousness," he added.
"Do you really want people to think that way about your policy?" Hayes rhetorically asked.
Let me remind you, on March 6, US President Trump signed an order to create a strategic reserve of Bitcoin and a digital asset storage in the US. According to the latest data, the US holds 198,012 Bitcoins worth over $18 billion. This reserve is mainly formed from Bitcoins confiscated in criminal and civil cases, including significant amounts from the Silk Road and Bitfinex hacks.
Bitcoin and altcoins: nothing new?
Hayes firmly believes that the Bitcoin cycle leading to the altcoin season will follow the same pattern as in 2021, despite differing views from other analysts.
"Personally, I think that Bitcoin's dominance will return to the level it was before the altcoin season of 2021, which is about 70%,” said Hayes.
Hayes does not think this template will change. "Then people just start rotating funds. Bitcoin is back at historical highs, bull markets have returned, and altcoins should show better dynamics. 'Should' is the key word here," Hayes ironically summarized.