Arthur Hayes noted that Scott sounded different from Yellen, yet both reach for liquidity when Washington keeps spending, and Treasury yields push higher. Arthur wrote: “I saw that. Don’t let the haters get you down. The crypto community is with you. You had no choice; we love you. Keep it up! Don’t stop printing money because if the markets go down, there will be no free shit for all the rich people and everyone else in America who believes that if they believe hard enough in capitalism, they will get rich too. If there isn’t any free shit, then AOC is going to raise our taxes, oy vey.”

Arthur Hayes discusses the similarities

Arthur Hayes noted that starting in late 2023, Yellen sold more Treasury bills and fewer longer bonds. Bills mature within one year, so money-market funds treat them like cash. Those funds could use the Fed’s Reverse Repo Program (RRP), which pays rates near the federal funds rate. Treasury bills had to offer more yield because congressional funding fights can delay repayment. The RRP held about $2.5 trillion. More bill supply pushed yields enough to pull money-market cash out of the Fed. By January 20, 2025, when Scott took office, $100 billion remained.

Arthur Hayes counts the $2.4 trillion drop as liquidity released into markets. Bitcoin and the Nasdaq 100 rose, while the 10-year yield backed away from 5%. Arthur wrote: “If you don’t understand why Bitcoin and risk assets pumped even as the Fed held rates at the highest level since 2008 and simultaneously shrank its balance sheet, then you will miss the next bull market that just began. This is the reason academics coined the term Activist Treasury Issuance (ATI) to describe the sorcery Bad Gurl Yellen wielded.”

The 5% level matters because 10-year Treasuries feed into mortgages, corporate bonds and consumer credit. Arthur says both secretaries want financing costs below that point. The issue for Scott is federal debt issuance, and for Treasury, it is cheap funding. Bills can easily be marketed due to the desire of investors to get short-term, dollar-denominated instruments. Cryptocurrencies are linked with this trend via the USDT issued by Tether and the USDC by Circle Internet Group (NYSE: CRCL).

According to Arthur Hayes, the Federal Reserve can facilitate the demand through the reserves management program by making bank reserves as well as purchasing bills. He further states that the process is controlled by John Williams from the Federal Reserve of New York. Scott can sell off bills and then purchase back long-term securities using the proceeds. On August 19, Scott added $20 billion to planned long-end buybacks. Ten-year yields fell, and Bitcoin rallied for two days, but yields soon moved above their pre-announcement level.

Arthur Hayes says $20 billion is tiny against roughly $40 trillion of federal debt. Scott also backed wider FIMA use, letting foreign holders, including Japan, borrow Fed-created dollars against Treasuries instead of selling them.

“The best case for Bitcoin would be for Scott to announce a BOJ-style bond market manipulation where he informs the market he will conduct unlimited buy-backs of 10-year plus tenors if the yield is >5%. Initially, 10-year bonds would pump, and yields dump as the market showed Scott some fucking respect. But as with all uneconomical market manipulation schemes, the market will test Scott and see if he is ready to back up his words with a dollar bazooka,” Arthur Hayes said.

Arthur Hayes believes that small-scale buybacks will take place unless the stress level rises to become severe, and uses the MOVE Index level above 130 as one of the indicators. The Treasury could also empty its Treasury General Account of around $1 trillion for buying purposes. Arthur Hayes expects Bitcoin to keep rising but also sees violent pullbacks. He says non-full-time traders should avoid leverage and hold their crypto exposure while watching Scott’s liquidity moves.

The post Arthur Hayes says Bessent is repeating Yellen’s mistakes first appeared on Coinfea.

Hayes said he would announce the airdrop “in a few months.” The project remains a paper concept, with a “massive airdrop” scheduled for the fourth quarter of 2026. Network genesis is targeted for early 2027.

Hayes returned to lead Flop Labs

Hayes announced four days before the warning his return as Flop Labs’ chief executive. He described FLOP as “food for your AI agent,” presenting it as a currency for autonomous software.

AI agents would use FLOP to purchase computing power, inference services, and memory storage. Miners would provide computing resources for AI tasks, earning block rewards and transaction fees. Validators would confirm that tasks were completed correctly and store memories for AI agents.

Hayes has described FLOP as the missing payment system for the “agentic economy.” In June, he identified debt linked to data center construction as the AI risk. He estimated that $1.5 trillion had been borrowed for AI infrastructure since November 2022.

Past trading activity draws scrutiny

The warning about unauthorized FLOP tokens comes as Hayes faces questions about his trading record. In June, his family office, Maelstrom, was accused of transferring $1.92 million in CARDS tokens to a market maker shortly after he publicly promoted the project.

On-chain investigator ZachXBT had documented Hayes closing positions in HYPE, NEAR, Zcash, and Worldcoin within two weeks of endorsing those tokens. Hayes answered the criticism by saying he “sold to a willing seller at a price.”

Hayes has repeatedly promised a “100% fair” FLOP launch without a presale or venture capital allocation. However, Flop Labs has not published a whitepaper, tokenomics schedule, contract address, blockchain selection, test network, or verification materials supporting that commitment.

Project documents remain unavailable

The absence of public documentation has increased scrutiny of the fair-launch proposal, particularly because rewards are expected to flow toward key opinion leaders. The planned sequence is unusual because the airdrop is scheduled before the underlying network’s targeted launch.

When questioned about the missing whitepaper, Hayes said the team was “still speaking with interested parties.” He added that informational graphics would begin appearing, starting with details about tokenomics.

For now, Hayes has emphasized that no legitimate FLOP token is publicly available. Investors cannot verify the proposed asset through a contract, audit, whitepaper, or functioning network. The authentic airdrop remains planned for late 2026, while the network is expected to begin operating in early 2027.

Separately, Maelstrom has announced plans to shut down by September. BitMEX plans to close its exchange on September 23, 2026.

The post Arthur Hayes Rejects Fake FLOP Tokens as Official Airdrop Remains Months Away first appeared on Coinfea.

The transaction attracted attention as Hayes has long ranked among Ethereum’s most visible supporters, giving the sale symbolic weight.

Tracking platform Lookonchain reported that Hayes sold the ETH at an average price near $1,821 per coin. The tokens moved to Cumberland and Galaxy Digital over two hours in exchange for USDC. His trade came as the broader cryptocurrency market fell about 2.1% to $2.25 trillion.

Bitcoin traded near $63,000 after declining 2.7%, while Ether dropped about 3.1% to $1,860. CryptoQuant placed ETH at $1,864.85, down 3.56% over 24 hours. Although Hayes’ sale represented a small share of Ethereum volume, it converted an unrealized decline into a loss during weak conditions.

Hayes Closes Part of July ETH Position

Lookonchain data shows Hayes accumulated 7,213 ETH between July 15 and July 28 for about $13.87 million. His average purchase price stood near $1,923 per ETH, leaving the position under pressure before Friday’s sale. Lookonchain described the move as another case in which Hayes had “bought high and sold low.”

The trade contrasts with his earlier confidence in Ethereum. In late 2025, Hayes said, “The coming Ether bull run is about to tear the market a new asshole… Maelstrom is doing all things Ethereum.” He also predicted that ETH would reach $10,000 by the end of that year.

However, Hayes later adopted a more defensive message. In his article Reality Test, he wrote, “But right now, it’s about protecting one’s crypto capital.” That statement places the sale within his established practice of adjusting exposure as macroeconomic conditions change.

Ethereum Staking Queue Stays Extended

Ethereum continues to show conflicting market signals. About 41.2 million ETH, equal to roughly 33.8% of circulating supply, is staked. Meanwhile, the validator activation queue has expanded to approximately 43 days, according to data cited by The Block.

Thomas Brunner, head of custody and staking at Sygnum Bank, said much of the queue reflects existing validators compounding rewards rather than a large influx of new investors. That distinction limits the strength of the staking queue as a direct measure of fresh demand.

Ether Forecast Falls With Tokenization Delays

Additionally, TD Cowen reduced its year-end Ether price forecast to $2,371 from about $3,650. The firm linked the revision to slower-than-expected progress on United States regulation for tokenized assets.

Against that background, Hayes’ transaction remains more symbolic than market-moving. Its size was insufficient to influence Ether’s price directly. Still, his reputation for making macro-driven portfolio changes has increased attention around the sale during a period of weak prices, cautious positioning, and slower tokenization expectations.

The post Arthur Hayes Sells ETH at a $241K Loss as Crypto Market Slides first appeared on Coinfea.

The posts and transfers raised fresh exit liquidity concerns. Hayes, the BitMEX co-founder, posted on X on June 23 that “$CARDS degens” had a “solid” thesis and said the token price was “pamping.” Meanwhile, Maelstrom’s X account shared a project link.

On-Chain Reports Trigger Backlash

Four days after Hayes’ post, analytics account SolanaFloor reported on X that Hayes had placed a $4 price target on CARDS while the token traded near $0.30. SolanaFloor also said Maelstrom sent $1.92 million worth of CARDS to market maker Flowdesk the next day, adding that the transfer was “likely for selling.”

The report drew criticism across Crypto Twitter. At the time of SolanaFloor’s post, CARDS traded near $0.23, about 23% below the level seen when Hayes endorsed it. The token later traded around $0.24.

On-chain analyst Ericonomic also highlighted the timeline on X. He said Hayes “shilled $CARDS 4 days ago” and that three days later an address sold “his entire stack through Fireblocks.” Ericonomic added that the wallet had not been publicly disclosed by Hayes, and the link was based on timing and token patterns.

ZachXBT Earlier Questioned Token Sales

The latest criticism follows earlier allegations raised by blockchain investigator ZachXBT. On June 6, Cryptopolitan reported that ZachXBT confronted Hayes over a similar cycle involving HYPE, NEAR, ZEC, and WLD.

According to ZachXBT, Hayes publicly endorsed the tokens before closing related positions within two weeks. Hayes called HYPE, ZEC, and NEAR the “Holy Trinity” on May 22. He later sold HYPE and NEAR by June 4 and dumped ZEC on June 5 after citing an exploit in its Orchard Pool. He also closed his WLD position the next day, less than 24 hours after describing Worldcoin as a SpaceX IPO play.

Hayes has not responded to CARDS’ claims

ZachXBT asked Hayes how much exit liquidity his followers had absorbed. Hayes replied that he “sold to a willing seller at a price” and “happened to call it right this time.”

ZachXBT has also flagged similar concerns around RAVE, SIREN, and LAB tokens. In a May 14 LAB investigation, he said insiders allegedly controlled over 95% of the supply while the project reached a fully diluted valuation above $6 billion. He described it as “everything wrong with the current meta of retail extraction on major centralized exchanges.”

Hayes has not publicly responded to the latest CARDS allegations. The alleged link between Maelstrom’s wallet and Flowdesk transfers has not been independently confirmed beyond reports cited by SolanaFloor and other accounts.

The post Arthur Hayes Faces Exit Liquidity Claims After CARDS Transfers first appeared on Coinfea.

However, Hayes cleared the air in a statement on X. “I didn’t buy shit,” he said. This is important in the context of crypto trading as HYPE is already up in double digits following the positioning by Hayes. Hayes sold off all of his investments in HYPE and NEAR tokens on June 4, predicting a crypto market peak ahead of September, due to the increasing cost of energy amid the Iran crisis, three huge AI company IPOs set to drain out liquidity from crypto markets to equity, and his prediction of Donald Trump potentially becoming anti-AI during the midterms.

Arthur Hayes denies HYPE withdrawal

The sale was notable because of the fact that Arthur Hayes has been one of the most vocal advocates for HYPE coins. In May, he had said that HYPE, ZEC, and NEAR were some of Maelstrom’s most highly conviction holdings, adding that Bitcoin could eventually reach new historical highs. However, Hayes’ decision to sell off his HYPE holdings came as an unexpected shock for the community, causing the price of the HYPE token to plunge sharply.

According to reports, the HYPE price fell by over 11% after the announcement, trading below $65. This sell-off resulted in many leveraged positions being liquidated in the HYPE perpetual marketplaces, amplifying downside pressure as traders reacted to one of crypto’s most closely watched macro investors unwinding his position. Lookonchain in an X post flagged the Bybit withdrawal. Hayes responded directly to Lookonchain’s post, writing on X: “I didn’t buy shit.”

In addition, Onchain Lens mentioned that 33,979 HYPE were withdrawn from the wallet. It added that there were 34,066 HYPE in the wallet at that time. It is not uncommon for such a discrepancy to occur, since wallets associated with public figures are identified through probabilistic on-chain data analysis, and the withdrawal of HYPE from an exchange may involve an internal transfer or someone else’s activity using the same set of addresses.

Given the timing of this story, it shows just how much crypto is still susceptible to whaling plays. HYPE was already suffering losses due to a token unlock event happening on June 6, where 237 million tokens, constituting about 23.8% of the total supply, became available to key contributors. The token unlock alone made up 71% of all token unlocks that occurred within the whole crypto market that week.

The influence of Arthur Hayes on market sentiment partly explains why traders reacted so aggressively. Though some of his market calls have not necessarily been perfectly timed, he has recently made quite a few predictions that got a lot of attention from investors. At the beginning of this year, for instance, Hayes called a bottom in Bitcoin at around $60,000, forecasting that the price would reach $126,000, all while naming HYPE, ZEC, and NEAR as suitable choices for speculative investments.

The post Arthur Hayes refutes $2M HYPE withdrawal from Bybit first appeared on Coinfea.

The transfer sparked speculation that the Maelstrom founder had re-entered the token after selling his position days earlier. Hayes pushed back on the claim on X, saying he did not buy the token.

Hayes Rejects Fresh HYPE Rumors

The latest HYPE transfer drew attention because Hayes had recently exited the token in a high-profile move. Lookonchain flagged the Bybit withdrawal, while Onchain Lens reported that the wallet held 34,066 HYPE after the movement.

Hayes responded directly to the on-chain post and denied any new purchase. His reply came as traders were already watching HYPE closely after a sharp price decline linked to his earlier exit.

The denial also highlighted the risk of reading too much into wallet labels. Addresses tied to public figures are often identified through on-chain patterns, and exchange withdrawals can involve internal movements or unrelated activity.

Earlier Exit Pressured HYPE Price

Hayes sold his HYPE and NEAR holdings on June 4 after warning that crypto markets could be near a peak before September. He cited rising energy costs during the Iran crisis, expected liquidity pressure from major AI company IPOs, and possible political pressure on AI during the U.S. midterms.

The move surprised traders because Hayes had previously named HYPE among Maelstrom’s strongest conviction holdings. In May, he had grouped HYPE with ZEC and NEAR as speculative tokens he favored while maintaining a bullish long-term view on Bitcoin.

Reports said HYPE dropped more than 11% after the sale and traded below $65. The decline also triggered liquidations across HYPE perpetual markets as leveraged traders rushed to adjust positions.

Token Unlock Adds More Market Pressure

HYPE was already under pressure before the wallet transfer attracted attention. A June 6 token unlock released 237 million tokens to key contributors, equal to about 23.8% of the total supply.

That unlock represented 71% of all crypto token unlocks for that week. The large release added supply concerns at a time when market sentiment had already weakened after Hayes exited.

The combined effect created a tough backdrop for HYPE. Spot selling increased liquidation pressure, liquidations pushed the price lower, and the sharp move encouraged smaller holders to follow the broader selloff.

Hayes’ market influence remains a major factor in how traders react to HYPE news. His calls do not always match market timing, but his views continue to draw attention because he remains one of the most-watched macro investors in crypto. Earlier this year, Hayes called a Bitcoin bottom near $60,000 and forecast a possible move toward $126,000.

The post Arthur Hayes Denies HYPE Buyback After $2M Transfer first appeared on Coinfea.

The face-off comes after Hayes exited positions in NEAR, HYPE, ZEC, and WLD in a space of two weeks, each sale following public endorsements that drew retail attention to the tokens. On May 22, Hayes called Hyperliquid’s HYPE, Zcash’s ZEC, and NEAR Protocol’s NEAR tokens the “Holy Trinity” and opened bullish positions on them. By June 4, he had sold his entire HYPE and NEAR holdings, posting on X that a forthcoming essay titled “Reality Test” would explain the reasoning.

ZachXBT and Arthur Hayes face off

Arthur Hayes stated that higher energy prices from the Iran conflict, three upcoming “mega AI IPOs,” and a prediction that Trump would pivot against AI ahead of the midterms were reasons for his action. One day later, Hayes dumped his ZEC position, pointing to the Orchard Pool exploit as the catalyst. He stated that “the privacy from AI, govt, big tech narrative demands perfection” and that the exploit, while unlikely to have enabled token minting, could not be “formally cryptographically proved impossible.”

At that point, he said he was still holding WLD. However, that hold lasted less than 24 hours. On June 4, Hayes framed Worldcoin as a bet on SpaceX’s upcoming Nasdaq listing, writing that the IPO was “going to melt people’s faces off.” By June 6, he had sold the WLD position too, writing that “this chart is going in the wrong direction.” The post made by ZachXBT highlighted all four exits, with the blockchain investigator directing a question to Hayes.

ZachXBT asked how much exit liquidity was created from his followers over the past couple of days, while listing the tokens in order that he promoted and sold them. Hayes responded to ZachXBT, writing, “I sold to a willing seller at a price.” He added, “Prices could be higher, and then I would be called a dumb ass. I just happened to call it right this time as it regards to my trading goals.” The dispute lands at a moment when influencer-driven trading remains one of crypto’s most contentious dynamics.

Hayes commands a large following. His HYPE/NEAR exit post alone pulled over 3,300 likes and 536 quote tweets, and his endorsements carry enough weight to move retail sentiment. The pattern ZachXBT identified is specific: public promotion generates buying interest, and the promoter capitalizes on that demand. Each trade came with its own rationale, from macro concerns to exploit risk to chart weakness. Taken together over 15 days, the cumulative effect is what ZachXBT characterized as followers absorbing the downside.

WLD was trading at $0.42 as of June 6, according to CoinMarketCap data, down more than 96% from its all-time high of $11.82 set in March 2024. Hayes has previously built and exited positions publicly, including a long-running bullish stance on ZEC. A Cryptopolitan report from May noted that Hayes had set a ZEC price target of 10% of Bitcoin’s value, which at the time implied a price above $8,000, roughly 14 times where ZEC was trading. The “Reality Test” essay Hayes promised as an explanation for his HYPE and NEAR exits has not yet been published.

The post ZachXBT blasts Arthur Hayes over ‘exit liquidity’ allegations first appeared on Coinfea.

WLD had climbed steadily over the previous three weeks while the broader altcoin market weakened, then turned volatile in early June. Hayes’ exit marked a fast shift from conviction in the AI-liquidity narrative to defensive position sizing. The reversal happened in days, not through a gradual portfolio rethink. On June 3, Hayes laid out an upside case for WLD. On June 4, he reaffirmed it, citing macro catalysts like the wave of major technology IPOs and treating Worldcoin as a high-beta proxy for the AI listing cycle. By June 6, he was out, posting a chart to explain the decision to sell the whole position.

Arthur Hayes exits his WLD position

The exit lined up with a broader stall in altcoins, where narrative-driven tokens that had ridden the liquidity rotation began underperforming more defensive majors. Crypto analyst Stacy Muur noted on June 5 that WLD had risen roughly 68% while the market fell about 10%, a gap she attributed partly to Hayes and his fund Maelstrom. The pattern was a textbook momentum exit: narrative build-up, a sharp run in price, then reassessment once the move lost steam.

The Worldcoin sale was the fourth major position Hayes closed in two days. On June 4, he dumped his entire HYPE and NEAR holdings, promising to explain his reasoning in an essay titled “Reality Test,” due next Tuesday. He cited rising energy prices from the Iran conflict, three major AI IPOs expected before early Q3, and a prediction that President Trump would pivot to an anti-AI stance before the midterms. A day later, he exited Zcash after the Orchard pool vulnerability surfaced.

He claimed the position was untenable because the exploit could not be formally proved incapable of enabling unauthorized minting. “The privacy from AI, govt, big tech narrative demands perfection,” he wrote. As Cryptopolitan reported, the ZEC dump ended his “Holy Trinity” of HYPE, NEAR, and ZEC. Worldcoin was the last to go. Hayes is influential enough to move sentiment even when his trades do not directly move price. His swing from accumulating altcoins to liquidating them in days suggests he expects headwinds for assets outside Bitcoin and Ether.

Hayes’ June 4 macro read, higher energy costs, capital rotating into AI IPOs, and possible regulatory pressure on AI, point to a tougher climate for risk assets. Investors still holding the tokens Hayes sold now face the question of whether those catalysts hit the broader altcoin market or just his book. WLD’s recent rally ran well ahead of its peers. How much of that premium survives without one of its loudest backers is the open question.

The post Arthur Hayes extends altcoin exit streak, dumps WLD days after bullish calls first appeared on Coinfea.

Arthur Hayes also mentioned that Saylor doesn’t concern himself with ordinary investors holding Bitcoin and hoping a public company will keep bidding forever. He added that Saylor is there to protect Strategy, its stockholders, and the products built around its balance sheet. “We’re going to see these little pops in Bitcoin, not huge. But every time you see that STRC is about to trade above par and go above 100, as you can literally front run Saylor transparently buying a couple billion dollars in two or three days. Why wouldn’t you want that trade, you know?” he said.

Arthur Hayes issues warning to Bitcoiners relying on Strategy’s BTC purchase

According to Hayes, the tracker indicated that Saylor could have made 2,000 BTC purchases once STRC broke above parity. He wants to anticipate the transaction because it is observable. As simple as it sounds, there are traders who would attempt to front-run a buying spree once an order from such a major player becomes apparent. On the other hand, Hayes confessed that he hasn’t researched all aspects of corporate finance in STRC.

However, he noted that what makes Strategy different is the fact that only a few organizations are capable of developing financial instruments based on Bitcoin. Strategy has the resources to leverage its massive Bitcoin balance sheet, Wall Street desks, and capital market structure. “I mean I don’t think Strategy is going out of business anytime soon. Obviously from what I understand he doesn’t have to pay a dividend in STRC. You’re sort of trusting that he’s going to. What happens when you trust in crypto. It doesn’t end up very well. Not that Saylor’s doing anything bad,” said Hayes.

Strategy has also been working on its debt side, moving to repurchase about $1.50 billion of convertible notes while still adding Bitcoin through stock-linked funding, as Cryptopolitan previously reported. That puts Saylor in the middle of more than one job at once: buy Bitcoin, manage leverage, keep capital coming in, and deal with investors who expect returns. Michael has also signaled that Strategy’s old “never sell” posture may not be as simple as people thought.

He indicated that limited Bitcoin sales could be used to improve BTC-per-share and help fund dividends. That is a big deal for Bitcoin investors who treated Strategy’s holdings like a vault that never opens. Scott told Arthur: “I talked to him [Saylor] Wednesday morning, just by total coincidence, like I had the first interview lined up with him right after he said he’d sell some Bitcoin. I was like, ‘Oh, this is going to be fire,’ and you know, like he didn’t say it explicitly, but yeah, his shareholders and anyone who’s buying STRC and the SEC need to hear that Bitcoin is not an impaired asset when it comes to protecting dividends and STRC.”

Scott also said Saylor may have to say he could sell some Bitcoin if retail investors get hurt, because a public company executive cannot just talk like a crypto anon on X. He joked that saying the wrong thing could bring legal trouble. Brian Armstrong, CEO of Coinbase Global Inc. (COIN), came up in the same context. “Like, you know, Brian Armstrong also can’t just go out there and say wild stuff about crypto prices. He has to actually protect his shareholders,” said Hayes.

The post Arthur Hayes says Michael Saylor cannot save Bitcoiners first appeared on Coinfea.

Speaking at Consensus Miami 2026, the BitMEX co-founder argued that crypto markets are not unusual because most risky assets lose relevance over time. 

He said weak tokens, like failed public companies, leave room for stronger projects to gain capital, users, and market attention.

Hayes framed the warning as a market cleanup rather than a rejection of crypto. He compared altcoins with companies once listed in the S&P 500, saying many businesses have disappeared since 1929 while the broader stock market survived. 

In his view, crypto moves through the same survival test, although token markets may expose weak projects faster because trading runs continuously.

Hayes Compares Weak Tokens With Failed Stocks

Hayes said the word coin often makes crypto sound unusual to traditional investors. 

However, he argued that many tokens should be viewed as software projects that seek users, revenue, and product-market fit. 

Some software products grow into durable networks, while many others fail after attracting early attention.

He said this process supports capital formation because developers can raise funds, test ideas, and let markets decide which products deserve continued backing. 

The outcome can be harsh for holders of weak tokens, yet Hayes described it as a familiar feature of open markets. In his assessment, failed altcoins do not prove that the entire sector lacks value.

Bitcoin Outlook Tied to Fiat Liquidity

Hayes also shifted attention to Bitcoin and argued that its long-term price depends more on fiat money creation than political approval. 

He said Bitcoin’s fair value should be judged by the amount of fiat money available now, the amount likely to exist later, and the pace at which governments expand supply.

He said the industry often focuses on regulation, traditional finance partnerships, and banking access. 

Still, he argued that Bitcoin reached major market value because it allows users to transfer value outside normal bank rails and state-controlled systems. 

Hayes said this utility matters more than whether regulators endorse the asset.

Regulation Debate Remains Secondary

Hayes said centralized crypto firms may support regulation because rules can protect established business models. 

He added that lobbying for favorable treatment is expected in major financial markets, especially in the United States and other large economies.

However, he argued that regulation does not decide whether Bitcoin or crypto works. Hayes pointed to Bitcoin trading around $82,000 as evidence of demand linked to its function rather than official approval. 

He said Bitcoin would lose much of its purpose if it became only another fixed-supply asset held inside traditional finance balance sheets.

The post Arthur Hayes Says 99% of Altcoins May Crash to Zero first appeared on Coinfea.