Arthur Hayes, the former CEO of BitMEX, anticipates that the ongoing crypto bull market will last until 2028. His forecast is based on the US government’s strategic initiative to shift global dollar flows through stablecoins.
US Government Targets Eurodollar Market Control
During Tokyo’s WebX conference on August 25, Hayes discussed how the significant fiscal deficit of the US fuels its ambitions for stablecoin policy.
He projected that the US intends to guide the $10-13 trillion Eurodollar market into government-controlled stablecoin systems. Treasury Secretary Scott Bessent is expected to push other countries to adopt US stablecoins, reflecting historical strategies of currency expansion.
Stablecoins grant Washington unparalleled control over offshore dollar deposits that were previously outside US jurisdiction. Issuers of stablecoins are required to keep reserves in American banks and acquire Treasury bonds with the funds generated. This setup ensures the government has reliable debt purchasers while allowing for control over monetary policy.
According to Hayes, this framework allows Bessent to influence short-term interest rates without considering the Federal Reserve. He forecasts that the stablecoin supply could reach $10 trillion as Fed funds rates decline to 2%, creating conditions that will support the bull market until 2028.
DeFi Platforms Positioned for Massive Inflows
Hayes noted four promising DeFi projects: Ethena, Hyperliquid, Ether.Fi, and Codex. These platforms will offer yield opportunities not found in traditional banking systems. A surge in stablecoin liquidity will open up new investment avenues across decentralized finance.
Social media platforms such as Facebook and X are expected to present dollar accounts to countries in the Global South. This shift could lead to an additional $4 trillion demand for Treasuries while undermining national currency regulations. Hayes referred to this change as a “once-in-a-century market opportunity” akin to the era of John Rockefeller.
He urged investors to keep an eye on the movement of capital from centralized exchanges to decentralized platforms. The growing stablecoin ecosystem will facilitate innovative financial services that were once unfeasible within traditional banking frameworks.
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