Bitcoin broke the $110,000 barrier twice yesterday (the 3rd), just a stone's throw away from its historical high; however, BitMEX founder Arthur Hayes warned that the market may have to take a step back in the short term. He predicts that once the U.S. (Big and Beautiful Act) is implemented, market funding will face withdrawal risks, and Bitcoin may first test $90,000.
This bill, strongly pushed by U.S. President Donald Trump, which includes $4.5 trillion in tax cuts and raises the national debt ceiling by $5 trillion, has just passed a vote in the Federal House of Representatives and is expected to be officially signed into law on July 4, U.S. Independence Day.
Arthur Hayes stated in a blog post (Quid Pro Stablecoin) on Wednesday that once the (Big and Beautiful Act) is implemented, the U.S. Treasury will inevitably increase its bond issuance to replenish its cash reserve account, the 'Treasury General Account (TGA)', withdrawing a large amount of funds from the market in a short time, impacting risk assets like Bitcoin.
"Please be vigilant," Arthur Hayes emphasized in the article, "this bullish trend may experience a brief interruption."
According to CoinGecko data, after Bitcoin's challenge of the $110,000 barrier ended in failure, it has currently fallen back to $109,395, a slight increase of 0.6% over the past 24 hours, with a gain of over 2% in nearly a week, just 2.2% away from this year's historical high of $111,814.
Although there may be some short-term headwinds, Arthur Hayes remains optimistic about the long-term market trend. He has pointed out that the Federal Reserve's quantitative easing policy will eventually boost Bitcoin and cryptocurrencies.
In May this year, he predicted that Bitcoin would rise to $1 million by 2028, as investors gradually flee the U.S. Treasury market and turn to alternative assets like Bitcoin.
Arthur Hayes also pointed out in the article that the U.S. government's increasing focus on stablecoins is not actually aimed at improving payment efficiency but rather to address funding issues. He noted that in the future, the U.S. is likely to legislate to restrict private companies from issuing stablecoins, transferring issuance rights to large banks, which would absorb market funds to purchase U.S. Treasuries, forming a new debt financing mechanism.
Currently, the U.S. Senate has passed the (GENIUS Act), which aims to establish a complete issuance and regulatory framework for stablecoins. Trump has publicly stated multiple times that he hopes to complete stablecoin legislation and have it signed into effect by the end of August.
"Trump's (Big and Beautiful Act) is about to launch! Arthur Hayes: Bitcoin may first test $90,000" This article was first published on (Block Ke).
