BitMEX co-founder Arthur Hayes said that the United States is unlikely to significantly increase its Bitcoin (BTC) reserves due to its rising national debt and cultural perceptions towards Bitcoin investors.
Speaking in an interview, Hayes expressed skepticism about the idea of the US creating a “strategic Bitcoin reserve” beyond its current holdings of around 200,000 BTC, which are largely comprised of seized cryptocurrencies from cases like Silk Road and Bitfinex.
“The United States is a deficit country,” said Hayes, adding, “The only way to establish a Strategic Reserve is to not sell the Bitcoins they seized. Okay, that makes 200 thousand BTC.”
Reminding that the US government officially owns more than 198 thousand BTC and the value of these assets exceeds $ 18 billion, Hayes argued that increasing the reserve through direct Bitcoin purchases is politically unrealistic.
Hayes said it was difficult for any “decent elected official” to advocate for printing money and buying BTC, which he noted contradicted the public perception of Bitcoin.
On the market side, Hayes reiterated that he expects Bitcoin’s market dominance to return to pre-2021 levels, around 70%, which he said points to altcoin rallies following classic Bitcoin bull markets.
“Bitcoin is back at all-time highs; the bull market is back and altcoins should outperform,” Hayes said, adding, “The word should is important here. It depends on what you buy.”
*This is not investment advice.
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