Bitcoin and Uncle Sam: Arthur Hayes Declares ’Permanent Misalignment’

BitMEX co-founder Arthur Hayes drops a truth bomb: Bitcoin’s decentralized ethos and the US government’s control addiction are fundamentally incompatible.

Why it matters: While Wall Street plays nice with regulators (for now), crypto’s rebel core won’t bend—even if it means forever living in regulatory purgatory.

The kicker: ’Governments print, Bitcoin fixes this’ isn’t just a meme—it’s an existential threat to the old financial guard. No wonder DC treats crypto like a teenager with a fake ID.

• Arthur Hayes says the U.S. government is unlikely to actively buy more Bitcoin due to national debt concerns and negative public perception.
• Although the U.S. holds ~200,000 BTC from seizures, Hayes believes expanding reserves is politically unrealistic.
• Meanwhile, private firms like MicroStrategy continue aggressive Bitcoin accumulation, with institutional interest rising in early 2025.

The U.S. government may be one of the largest holders of Bitcoin, but according to BitMEX co-founder Arthur Hayes, that’s unlikely to change anytime soon. In a recent interview on May 1, Hayes said the chances of the U.S. significantly increasing its Bitcoin reserves are slim, citing national debt concerns and the cultural optics surrounding Bitcoin investors.

Hayes argued that while the U.S. technically holds nearly 200,000 BTC, mostly seized through high-profile criminal cases involving Silk Road and Bitfinex, it’s politically and economically impractical for the country to actively purchase more Bitcoin.

The United States is unlikely to significantly increase its Bitcoin holdings, says BitMEX co-founder Arthur Hayes, citing the country’s ballooning national debt and the cultural image tied to Bitcoin investors. He said it would be difficult for any “properly elected” official to…

“The United States is a deficit country,” Hayes explained. “The only way they can do a strategic reserve is by not selling the Bitcoin they took from people. Fine, that’s 200,000 Bitcoin.”

He emphasized that expanding those reserves through direct purchases would be nearly impossible for any elected official to justify, especially in an era of rising fiscal scrutiny. According to Hayes, the public perception of Bitcoin, often associated with speculative trading and crypto party culture, makes it politically toxic.

“Try explaining to voters why you’re printing more money to buy Bitcoin,” he said. “Especially when the popular narrative is a bunch of BTC bros going to the club. Is that really what you want people to think about your policy?”

Arthur Hayes Predicts Bitcoin Surge and Altcoin Rally

Hayes’ remarks come on the heels of a surprising executive order signed by former President Donald Trump, aimed at exploring the creation of a U.S. strategic Bitcoin reserve. While some in the crypto community viewed it as a signal of long-term government support, others, including Hayes, dismissed it as more symbolic than actionable.

Despite Hayes’ skepticism, the announcement has fueled debate about whether the U.S. will eventually join other nations in actively acquiring BTC as a hedge against inflation and economic instability.

Turning to the broader crypto market, Hayes expressed confidence in the resurgence of Bitcoin dominance. He believes the market is heading back to pre-2021 dynamics, with BTC reclaiming its position as the market leader before altcoins begin their rally.

“It’s back at all-time highs; bull markets are back, and altcoins should outperform,” Hayes said. “Should is the keyword depends on what you buy.”

Bitcoin dominance currently sits at 64.78%, up from under 60% at the start of 2025. Hayes expects a return of 70%, though not all analysts agree. Benjamin Cowen argues that BTC is unlikely to regain that level of dominance, while CryptoQuant CEO Ki Young Ju believes traditional indicators of altcoin season are outdated. He points instead to stablecoin and fiat inflow data as more accurate indicators in today’s market.

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

MicroStrategy Expands Bitcoin Buying

While the U.S. government remains hesitant, the private sector is charging forward. Michael Saylor’s firm, MicroStrategy, has dramatically increased its capital-raising plans to acquire more BTC.

The Virginia-based company revealed it is doubling its equity raise to $84 billion, filing to sell an additional $21 billion in shares after already exhausting its previous allocation. It also increased its debt issuance target from $21 billion to $42 billion, leaving just under $15 billion in unused capacity.

This aggressive strategy reflects a broader trend among public companies. In Q1 2025 alone, institutional BTC holdings grew by 16.1%, highlighting a sustained appetite for digital assets despite ongoing market volatility.

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