Market News

US Government Seeks to Infuse $9 Trillion, Sparking New Bitcoin and Crypto Flow

Arthur Hayes, co-founder of BitMEX, predicts a substantial influx of $9 trillion into the US economy by 2028, primarily facilitated by the Federal Reserve's monetary policies.

He believes that this liquidity will first enter traditional economic sectors before flowing into risk assets, including Bitcoin (BTC).

Hayes projects that Bitcoin could surge by approximately 139% by year's end, with a potential price of $250,000, and ultimately reach $1 million by 2028.

His rationale centers around Bitcoin's fixed supply and comparatively smaller market cap, suggesting that demand increases will significantly elevate its price.

As Bitcoin currently trades around $104,462, its performance has been noteworthy, being the best-performing financial asset over the past 15 years.

Moreover, regulatory developments in the US, such as the bipartisan GENIUS Act, are setting a framework for stablecoins and enhancing the legitimacy of the crypto landscape.

States like Ohio are also adopting crypto-friendly legislation to encourage growth, including tax exemptions for small crypto transactions.

These evolving dynamics suggest the US is positioning itself as a leader in digital assets, further attracting institutional interest amid global challenges.

As the situation unfolds, market observers anticipate increased demand for Bitcoin, indicating a thriving future for cryptocurrency in the wake of significant government liquidity injections.

Overall, the interplay between regulatory progress and substantial financial inflow could reshape the entire crypto ecosystem in the US.