Bitcoin Bro's at 'The Club' May Stop US Gov't from Buying BTC — Arthur Hayes

BitMEX co-founder Arthur Hayes has sparked a debate on the possibility of the United States government buying Bitcoin, citing concerns over the country's high debt levels and the stereotype behind "Bitcoin bros" partying in nightclubs.

"I'm not really into the whole Strategic Reserve situation," Hayes said in a May 1 interview. "The United States is a deficit country; the only way they can do a Strategic Reserve is not sell the Bitcoin they took from people, fine, that's 200,000 Bitcoin."

Hayes expressed doubts about the government printing money to buy Bitcoin, stating it's hard to imagine any "properly elected" politician openly announcing such a plan. "Is that really what you want people to think about your policy?" he asked.

A High-Debt Country Can't Afford to Print Money for BTC

The United States has been facing high debt levels, which raises concerns about the government's ability to print money to buy Bitcoin. Hayes believes that if the US government were to do so, it would be a sign of desperation and an admission that they cannot manage their finances.

Altcoin Season: The Cycle Will Continue

Hayes remains confident that the Bitcoin cycle leading into altcoin season will follow the same pattern as it did in 2021. "I personally think Bitcoin dominance is going back to where it was before the 2021 altcoin season, which is about 70%," he said.

"Then people just start rotating," Hayes explained. "It's back at all-time highs; bull markets are back, and altcoins should outperform." However, he also noted that "should" implies a degree of uncertainty, and the outcome depends on what individuals buy.

The Domino Effect: US Government Buying BTC Could Spark Global Chaos

Sergej Kunz, co-founder of exchange aggregator 1inch, warned that if the US government starts buying Bitcoin for a strategic reserve, even smaller countries may soon struggle to acquire the cryptocurrency. "I'm pretty sure we'll soon see countries battling over who owns more Bitcoin. The US will start," he said.

This could lead to a domino effect, with global markets becoming increasingly volatile as countries and investors vie for access to the coveted cryptocurrency.

Bitcoin Dominance: Where Is It Headed?

At the time of publication, Bitcoin dominance is 64.78%, representing an 11.68% increase since January 1st. While some analysts predicted that Bitcoin dominance would never return to 70%, Hayes believes it will, at least temporarily.

A Shift in Perception: Altcoin Season Is No Longer Defined by Asset Rotation

Into The Cryptoverse founder Benjamin Cowen argued that altseason is no longer defined by asset rotation from Bitcoin to altcoins. Instead, the traditional signal marking the beginning of an altcoin season has become outdated.

Stablecoin and Fiat Currency Pairs: A New Era for Altcoin Trading

CryptoQuant CEO Ki Young Ju observed that altcoin trading volume has become more prevalent against stablecoin and fiat currency pairs. This shift indicates a new era in altcoin trading, one that is less dependent on asset rotation from Bitcoin.