- Bitcoin may drop to $90,000 before hitting new highs, according to Arthur Hayes, due to upcoming U.S. fiscal policies.
- He believes Bitcoin will ultimately rise long-term as liquidity returns and crypto legislation advances.
Bitcoin is grabbing headlines again—but not just for its climb past $110,000. According to Arthur Hayes, co-founder and former CEO of BitMEX, the flagship cryptocurrency could pull back to $90,000 before launching toward a new all-time high. The trigger? President Trump’s soon-to-be-signed “Big Beautiful Bill,” a major legislative move that could shake up financial markets in the short term.
Why Bitcoin at $90K Is Still in Sight
Despite a 2% rise over the past week, Bitcoin is still 2% below its May peak of $111,814. Hayes warns that the signing of the bill—which aims to cut taxes and raise the debt ceiling—could lead to increased borrowing by the U.S. Treasury. This action might drain liquidity from financial markets, temporarily pressuring asset prices, including Bitcoin.
In his recent blog post titled “Quid Pro Stablecoin,” Hayes advised caution, noting that the Treasury’s General Account would need replenishing. That move could momentarily sap demand for crypto assets. Still, he remains bullish long-term, citing historical patterns of monetary expansion and investor shifts away from government bonds.
Legislation Signals a Long-Term Boost
While the immediate outlook may be choppy, Hayes is optimistic about Bitcoin’s future. He previously predicted BTC could soar to $1 million by 2028, driven by weakening confidence in traditional financial instruments and continued money printing by the U.S. Federal Reserve.
Additionally, crypto adoption in the U.S. is gaining legislative traction. The recent Senate approval of the GENIUS Act—a bill that provides a legal framework for stablecoin issuance and trading—marks a significant step toward mainstream acceptance. Hayes sees stablecoins as a tool to help the U.S. reduce its deficit, not just fix payment infrastructure.
The Takeaway
Bitcoin’s rise may not be a straight path. With major policy changes on the horizon, a pullback to $90K could be in the cards before a fresh rally begins. But as Arthur Hayes emphasizes, the long-term case for Bitcoin remains strong—especially in a world of debt ceilings, tax cuts, and digital currency legislation.
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