With Bitcoin price slowly inching higher to $107,500, BitMEX Co-founder Arthur Hayes has shared three key reasons why a new BTC all-time high is inevitable. Ex- JP Morgan trader Hayes predicts a confluence of factors that could trigger this rally, such as the US Treasury working on SLR exemption, crypto regulatory development with GENIUS Stablecoin Act, and the drop in geopolitical tensions following the Iran-Israel ceasefire, earlier this week.
Popular analyst Arthur Hayes believes that the Bitcoin all-time high is coming sooner rather than later, and he cites three key reasons why this is absolutely inevitable. He noted several liquidity boosting measures, just at the time when US President Donald Trump is looking for an alternative to Fed Chair Jerome Powell, who has been firm on holding interest rates higher, citing sticky inflationary conditions.
Arthur Hayes cited that the US Treasury is considering the supplement leverage ratio (SLR) by up to 1.5% for some of the biggest lenders in the country. The Treasury had first implemented these measures back during the COVID-19 pandemic, ushering a massive liquidity for the global market.
Certain regulators are pushing for a permanent exemption, while others propose exploring alternative avenues for relief. Loosening of the SLR would lead to more liquidity pump into the market, triggering the risk-on sentiment in the market. Hayes believes that these measures could trigger the next major crypto bull run, with Bitcoin hitting fresh all-time highs.
With the GENIUS Stablecoin Act now reaching the House for final approval, Hayes believes that it would be a major bullish event for US banks. This would allow US banks to convert their USD cash reserves to convert into stablecoin assets, thereby leading to more liquidity pump.
The GENIUS Act establishes a framework enabling both banks and nonbanks to issue stablecoins, while limiting such issuance by public companies outside the financial sector. Banks view this as an opportunity to leverage stablecoins for faster and more cost-effective payment solutions.
The Senate approved the GENIUS Act last week with overwhelming bipartisan backing, passing it in a 68-30 vote. With the final vote left in the House, US President Donald Trump has personally requested to get the bill on his desk as soon as possible.
Wall Street banks have already started exploring a joint stablecoin venture. Hayes believes that it could further propel the stablecoin supply in the crypto market, leading to a major bull run.
The Iran-Israel ceasefire earlier this week led to a strong crypto market rally, with Bitcoin and altcoins catching the upside momentum. Arthur Hayes believes that the geopolitical tensions have finally settled, which would support an upside rally for BTC. “Ignore the reality, Trump, Bibi, and Kahmenei are all pretending the conflict is finished, so investors should too,” he wrote.
Furthermore, the market is bracing for some positive developments, like the approval of Bitcoin-backed mortgages by the US FHFA. Industry players have already accelerated their BTC acquisition plans with MicroStrategy, Metaplanet, Semler Scientific, and Anthony Pomplian’s ProCap announcing mega BTC purchases so far this week. This accumulation could prove as a catalyst for a fresh Bitcoin all-time high.
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