Arthur Hayes Says Bitcoin Will Remain Flat Until This Date: We Could Drop to 90k with a Critical Development!

Behind the US government's support for stablecoins lies a massive liquidity play that could pull the Bitcoin price to $90,000 in the short term.

Arthur Hayes, one of the leading figures in the cryptocurrency markets, stated in his latest analysis that the markets will trend sideways or slightly down until the Jackson Hole meeting in August. Hayes predicts that if the replenishment of the US Treasury General Account (TGA) negatively affects dollar liquidity, the price of Bitcoin (BTC) could decline to the range of $90,000 to $95,000. In light of these expectations, the Maelstrom fund managed by Hayes has completely sold off illiquid altcoin positions and is considering reducing Bitcoin positions based on market performance.

According to Hayes, the interest shown by US Treasury Secretary Scott Bessent in stablecoins is driven by political and economic reasons. The US administration is forced to finance budget deficits by borrowing at low costs without raising taxes. However, the market is no longer showing a high demand for long-term bonds from highly indebted countries at high prices. This is where stablecoins come into play.

What is the main task of stablecoins?

According to Hayes, the issuance of stablecoins by major American banks could create a purchasing capacity for a new $6.8 trillion T-bill (Treasury bill). This allows banks to convert their existing deposits into bond purchases, indirectly injecting massive liquidity into the markets.

However, Hayes urges investors to be cautious. He believes the market could remain flat and uncertain in the short term, with a clear upward movement possibly starting in September.

As a result, while markets await Powell's new QE move, the real big game has already begun. The main risk for Bitcoin investors may be remaining inactive and missing out on this opportunity.