Arthur Hayes said the US-China Agreement will skyrocket Bitcoin: The real power is in the Treasury! - Coin Bulletin

Arthur Hayes emphasizes to crypto investors and Bitcoin (BTC) HODL'ers that the real important entity is the Treasury Department rather than the American Central Bank (Fed).

Arthur Hayes stated in an interview that it is wrong for investors to focus on Fed policy. According to him, the real important thing is the strategies implemented by the U.S. Treasury Department. Hayes said, "The real show is happening at the Treasury Department, what the Fed does is of no importance". He argued that under the Democratic administration in 2022 and the current Republican administration, the policies guided by the Fed are merely a show.

Hayes points out that the main monetary policies are shaped under the leadership of Treasury Secretary Scott Bessent. Bessent is reshaping global liquidity with repurchase and auction strategies to manage the growing debt of the U.S. Hayes notes that this situation forms the basis of his prediction that Bitcoin will reach 1 million dollars by 2028. "Is there more dollars in the system today than yesterday? The answer to this question is important" he stated.

According to Hayes, not only monetary policy but also the trade diplomacy between America and China is an important factor. A strong agreement between the two countries is expected, but these agreements will remain superficial and no real change will occur. Hayes emphasizes that China is more resilient to economic pains and states that the U.S. plans to reduce its dependence on foreign buyers with new taxes on foreign investments.

Hayes states that the economic strategy of America is aimed at taking steps to rebalance financial accounts rather than ensuring that the public consumes less. Emphasizing that China's interest in American assets will continue, Hayes expresses that he sees this as an opportunity for Bitcoin to gain more value. Hayes's portfolio consists of 60-65% Bitcoin, 20% Ethereum (ETH), and the remainder from projects he refers to as "quality shitcoin".

Hayes noted that there is an increasing interest in functional and solid projects in the crypto world, stating, "The era of fundamental analysis has begun. People are now too tired to endure coins that have no functionality."