Hayes: Crypto Bull Run to 2028 on US Stablecoin Strategy
Arthur Hayes Predicts Crypto Bull Market Through 2028
Former BitMEX CEO Arthur Hayes anticipates the current cryptocurrency bull market will continue until 2028. His forecast hinges on the US government's strategic utilization of stablecoins to manage global dollar flows.
US Stablecoin Policy Aims for Eurodollar Dominance
Speaking at the WebX conference in Tokyo on August 25th, Hayes detailed how the US fiscal deficit motivates its stablecoin strategy. He believes the US aims to redirect the $10-13 trillion Eurodollar market into US-controlled stablecoin ecosystems.
Hayes suggests Treasury Secretary Scott Bessent will spearhead efforts to encourage global adoption of US stablecoins. This approach aims to exert greater control over offshore dollar deposits, which have traditionally been outside US jurisdiction. Stablecoin issuers are required to hold reserves in American banks and invest in Treasury bonds, effectively securing debt buyers and enhancing monetary policy control for the US government.
Hayes further explained that this system allows Bessent to influence short-term interest rates, bypassing the Federal Reserve. He projects stablecoin supply will reach $10 trillion as Fed funds rates decline to 2%, sustaining the bull cycle through 2028.
DeFi Platforms Poised for Inflows
Hayes identified several DeFi platforms as being well-positioned to benefit from this influx of stablecoin liquidity:
- Ethena
- Hyperliquid
- Ether.Fi
- Codex
These platforms offer yield opportunities that are not available within traditional banking systems, potentially attracting significant investment.
Hayes also highlighted that social media platforms could offer dollar accounts in Global South countries, generating substantial Treasury demand and challenging national currency controls. He views this as a potentially transformative event, comparing it to historical market shifts.
Hayes advises investors to monitor capital flows from centralized exchanges to decentralized platforms, as the expanding stablecoin ecosystem fosters the development of innovative financial services.