US Treasury Won’t Touch Bitcoin—Too Much Debt, Too Much ’Bro Energy’, Says Arthur Hayes
Bitcoin maximalists hoping for a US government buy-in shouldn’t hold their breath. Arthur Hayes—BitMEX co-founder and crypto’s resident provocateur—just threw cold water on the idea, citing America’s debt spiral and Bitcoin’s lingering ’frat boy’ reputation.
The Debt Ceiling is a Bitcoin Ceiling
Hayes argues the Treasury can’t afford to gamble on volatile assets when it’s busy printing trillions to service existing obligations. ’They’d rather inflate the dollar into oblivion than explain to Congress why they’re buying the internet’s favorite gambling token,’ he quipped.
Image Problem: From Cypherpunks to Crypto Bros
The bigger hurdle? Bitcoin’s PR disaster. Once the domain of privacy activists, it’s now synonymous with leveraged degenerates and Miami conference afterparties. ’No bureaucrat wants their name on a memo approving purchases of an asset class still associated with FTX-level antics,’ Hayes noted—before adding dryly: ’Unless maybe they get paid in Tether.’
Meanwhile, BlackRock Cashes In
Irony alert: While the US avoids crypto like a Wells Fargo compliance officer avoids risk, institutional ETFs are hoovering up BTC at record pace. Guess those ’uncorrelated asset’ PowerPoints finally landed with the suits.
Arthur Hayes Says U.S. Bitcoin Buying Unlikely
While the U.S. government officially holds over 198,000 BTC worth more than $18 billion, Hayes believes expanding those reserves through direct purchases is politically implausible.
He said it would be difficult for any “properly elected” official to justify printing more money to buy Bitcoin.
“Especially when the popular narrative is a bunch of Bitcoin bros going to the club,” Hayes added. “Is that really what you want people to think about your policy?”
The comments come weeks after former President Donald Trump signed an executive order to establish a U.S. strategic Bitcoin reserve, sparking debate over whether the move signals long-term institutional support or is more symbolic.
Despite skepticism from Hayes, others in the crypto community believe such a move by the U.S. could trigger a global rush for Bitcoin.
On the market side, Hayes reiterated his belief that Bitcoin dominance is heading back to pre-2021 levels near 70%, signaling a return to the familiar boom-and-bust cycle of Bitcoin surges followed by altcoin rallies.
“It’s back at all-time highs; bull markets are back, and altcoins should outperform,” he said. “Should is the keyword there. Depends on what you buy.”
Bitcoin dominance currently sits at 64.78%, up from just under 60% at the start of the year.
While Hayes expects a return to historic highs, not everyone agrees. Analysts like Benjamin Cowen have argued that Bitcoin dominance is unlikely to reach 70% again.
Others, such as CryptoQuant CEO Ki Young Ju, say traditional metrics for tracking altcoin season are outdated, with newer signals now driven more by fiat and stablecoin volume.
Alt season is no longer defined by asset rotation from #Bitcoin.
The surge in altcoin trading volume isn’t driven by $BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation.
Stablecoin liquidity better explains the altcoin markets. pic.twitter.com/riejM7oXyk
Saylor’s Strategy Doubles Capital Raise for Bitcoin Purchase to $84B
Despite the US government’s lack of interest in purchasing Bitcoin, public companies continue to show interest in the leading cryptocurency.
Just recently, Michael Saylor’s firm, Strategy, announced it is doubling its capital raising plan to $84 billion in an aggressive push to acquire more Bitcoin.
The Virginia-based company disclosed Thursday that it has filed to sell an additional $21 billion in common shares after depleting a previous program of the same size authorized in October.
It also doubled its debt issuance target from $21 billion to $42 billion, leaving $14.6 billion remaining under its current authorization.
In the first quarter of the year, publicly traded companies increased their Bitcoin holdings by 16.1%, signaling continued institutional interest in the leading cryptocurrency despite market volatility.
