BlockBeats news, on May 8, BitMEX co-founder Arthur Hayes warned cryptocurrency investors and Bitcoin holders that those overly focused on Federal Reserve policies have missed the point, as the U.S. and China are gradually reaching a trade agreement. 'The real focus is on the Treasury. Don't mind the Fed, it's not important,' Hayes said in a recent interview with CoinDesk. 'Powell didn't matter when the Democrats were in power in 2022, and it doesn't matter now that the Republicans are in power.'
For Hayes, the Federal Reserve has become a secondary role. He believes that real monetary policy control is in the hands of Treasury Secretary Yellen, who silently reshapes global liquidity through repurchase and auction strategies to manage the U.S.'s ever-expanding debt burden. This flood of liquidity, combined with the U.S.'s inability to control spending, is the reason Hayes predicts Bitcoin will reach $1 million by 2028.
'We only care about whether there are more dollars in the system today than yesterday,' Hayes said. 'That’s the key.' But monetary policy is not the only catalytic factor in his view. Hayes believes that geopolitics is also at play, especially the performative trade diplomacy between the U.S. and China. He noted that both sides might sign an agreement that is superficially bold but essentially unchanged.
