Arthur Hayes Predicts Bitcoin Dip to $90K Amid Trump's New Bill—But Remains Bullish for 2025

BitMEX founder Arthur Hayes remains optimistic about Bitcoin's long-term trajectory but warns of potential short-term volatility. According to Hayes, Bitcoin could see a dip to $90,000 following the enactment of President Trump's 'Big Beautiful Bill', which aims to cut taxes and increase the debt ceiling. This legislation could lead the U.S. Treasury to borrow more, potentially draining liquidity from markets and affecting asset prices, including Bitcoin.

The Impact of Trump's Bill on Bitcoin

Hayes suggests that the Treasury's move to refill its General Account might create a temporary liquidity crunch, impacting Bitcoin's price. However, he believes this would be a short-term setback, with Bitcoin poised to continue its upward trend thereafter. "Proceed with caution," Hayes advises, noting that "the bull market might be interrupted for a short period of time."

Bitcoin's Current Market Performance

As of now, Bitcoin is trading at $109,594, showing a 2% increase over the past week but still 2% below its all-time high of $111,814 reached in May. Hayes has previously linked Bitcoin's potential growth to U.S. monetary policy, particularly money printing, predicting that Bitcoin could reach $1 million by 2028 as investors seek alternatives to U.S. treasuries.

The Role of Stablecoins in Reducing Deficit

Hayes also touches on the U.S. government's interest in stablecoins, arguing that it's less about improving payments and more about controlling the deficit. With the GENIUS Act recently passed by the Senate, Hayes speculates that big banks might use stablecoins to purchase U.S. treasury bills, thereby helping to reduce national debt.