Odaily Planet Daily News BitMEX co-founder Arthur Hayes recently wrote that the U.S. Treasury's support for stablecoins issued by TBTF large banks is one of its key policies to address the enormous fiscal deficit and pressure from national debt. He believes that this will unleash up to $6.8 trillion in short-term Treasury bill purchasing power and drive up financial markets. At the same time, if the Federal Reserve terminates interest payments on bank reserves (IORB), an additional $3.3 trillion in funds will flow into the Treasury market. Arthur Hayes stated that although this policy combination is not traditional quantitative easing (QE), it will have an equal upward driving force for fixed-supply assets such as Bitcoin. He predicts that after the Trump spending bill is passed and the debt ceiling is raised, the U.S. Treasury will replenish the Treasury General Account (TGA) by issuing bonds, which may temporarily suppress market liquidity, and Bitcoin may consolidate around $100,000, with a pullback low between $90,000 and $95,000. However, after liquidity recovers in early September, a new round of increases will begin. Arthur Hayes concluded that the real stablecoin narrative does not lie with FinTech companies, but rather with TBTF banks using stablecoins to reconstruct compliance, costs, and Treasury purchasing power in a 'financial weaponization innovation'. He suggests investors to 'go long on Bitcoin and go long on JPMorgan', embracing this new liquidity cycle led by the Treasury.

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