Arthur Hayes: US Unlikely to Buy Bitcoin Due to Debt and ‘Bro’ Stigma

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Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has...

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May 2, 2025

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The United States is unlikely to significantly increase its Bitcoin holdings, says BitMEX co-founder Arthur Hayes, citing the country’s ballooning national debt and the cultural image tied to Bitcoin investors.

In a May 1 interview, Hayes cast doubt on the idea that the U.S. would proactively build a “strategic Bitcoin reserve,” beyond the nearly 200,000 BTC already in its possession—assets primarily seized from criminal investigations such as the Silk Road and Bitfinex cases.

“The United States is a deficit country,” Hayes said. “the only way they can do a Strategic Reserve is not sell the Bitcoin they took from people, fine, that’s 200,000 Bitcoin.”

Arthur Hayes Says U.S. Bitcoin Buying Unlikely

While the U.S. government officially holds over 198,000 BTC worth more than $18 billion, Hayes believes expanding those reserves through direct purchases is politically implausible.

He said it would be difficult for any “properly elected” official to justify printing more money to buy Bitcoin.

“Especially when the popular narrative is a bunch of Bitcoin bros going to the club,” Hayes added. “Is that really what you want people to think about your policy?”

The comments come weeks after former President Donald Trump signed an executive order to establish a U.S. strategic Bitcoin reserve, sparking debate over whether the move signals long-term institutional support or is more symbolic.

Despite skepticism from Hayes, others in the crypto community believe such a move by the U.S. could trigger a global rush for Bitcoin.

On the market side, Hayes reiterated his belief that Bitcoin dominance is heading back to pre-2021 levels near 70%, signaling a return to the familiar boom-and-bust cycle of Bitcoin surges followed by altcoin rallies.

“It’s back at all-time highs; bull markets are back, and altcoins should outperform,” he said. “Should is the keyword there. Depends on what you buy.”

Bitcoin dominance currently sits at 64.78%, up from just under 60% at the start of the year.

While Hayes expects a return to historic highs, not everyone agrees. Analysts like Benjamin Cowen have argued that Bitcoin dominance is unlikely to reach 70% again.

Others, such as CryptoQuant CEO Ki Young Ju, say traditional metrics for tracking altcoin season are outdated, with newer signals now driven more by fiat and stablecoin volume.

Saylor’s Strategy Doubles Capital Raise for Bitcoin Purchase to $84B

Despite the US government’s lack of interest in purchasing Bitcoin, public companies continue to show interest in the leading cryptocurency.

Just recently, Michael Saylor’s firm, Strategy, announced it is doubling its capital raising plan to $84 billion in an aggressive push to acquire more Bitcoin.

The Virginia-based company disclosed Thursday that it has filed to sell an additional $21 billion in common shares after depleting a previous program of the same size authorized in October.

It also doubled its debt issuance target from $21 billion to $42 billion, leaving $14.6 billion remaining under its current authorization.

In the first quarter of the year, publicly traded companies increased their Bitcoin holdings by 16.1%, signaling continued institutional interest in the leading cryptocurrency despite market volatility.