Arthur Hayes forecasts Bitcoin’s new all-time high, driven by SLR exemption, GENIUS Act, and Iran-Israel ceasefire boosting market confidence.
BitMEX Co-founder Arthur Hayes has disclosed three main reasons why a new BTC all-time high is inevitable, as the Bitcoin price has gradually increased to $107,500. Former JP Morgan trader Hayes anticipates that a combination of factors, including the US Treasury’s efforts to establish an SLR exemption, the GENIUS Stablecoin Act, and the reduction in geopolitical tensions as a result of the Iran-Israel ceasefire earlier this week, could serve as catalysts for this rally.
What is the reason for Arthur’s extreme optimism regarding Bitcoin?
A prominent analyst, Arthur Hayes, thinks the Bitcoin all-time high is imminent and provides three compelling reasons. He observed numerous liquidity-enhancing measures when US President Donald Trump sought an alternative to Fed Chair Jerome Powell, who was steadfast in his commitment to maintaining interest rates at a higher level, citing sticky inflationary conditions.
The SLR Exemption Will Be Announced Soon by the US Treasury
Arthur Hayes stated that the US Treasury is contemplating increasing the supplement leverage ratio (SLR) by up to 1.5% for some of the nation’s largest lenders. During the COVID-19 pandemic, the Treasury initially instituted these measures, resulting in a significant increase in liquidity for the global market.
Some regulators advocate for a permanent exemption, while others suggest alternative relief methods. The risk-on sentiment in the market would be triggered by the increased liquidity injection that would result from the loosening of the SLR. Hayes believes that these measures have the potential to initiate the next significant crypto bull run, which would result in Bitcoin reaching new all-time highs.
Hayes is optimistic about the potential of the GENIUS Stablecoin Act to assist US banks
Hayes anticipates that the GENIUS Stablecoin Act, which is currently poised to receive final approval in the House, would be a significant positive development for US institutions. This would enable US institutions to convert their USD cash reserves into stablecoin assets, generating an additional liquidity pump.
The GENIUS Act creates a framework that permits the issuance of stablecoins by both banks and nonbanks while restricting the issuance of stablecoins by public entities not part of the financial sector. Banks perceive this as an opportunity to utilize stablecoins to provide more cost-effective and expedited payment solutions.
Last week, the Senate passed the GENIUS Act with a 68-30 vote, with a resounding bipartisan majority. US President Donald Trump has requested that the measure be placed on his desk as soon as possible, as only one vote remains in the House.
Wall Street institutions have initiated the exploration of a joint stablecoin venture. Hayes believes that it has the potential to significantly increase the supply of stablecoins in the crypto market, thereby triggering a significant bull run.
Moving Beyond the Iran-Israeli Conflict
This week, the crypto market experienced a robust rally due to the Iran-Israel ceasefire, with Bitcoin and altcoins capitalizing on the upward momentum. Arthur Hayes believes that the geopolitical tensions have been resolved, which would bolster an upward trend in BTC. He wrote, “Investors should ignore the reality; Trump, Bibi, and Kahmenei are all claiming the conflict is over, so they should as well.”
The current market is also anticipating some favorable developments, such as the US FHFA’s approval of Bitcoin-backed mortgages. MicroStrategy, Metaplanet, Semler Scientific, and Anthony Pomplian’s ProCap announced significant BTC acquisitions this week, indicating that industry participants have already expedited their acquisition plans. This accumulation can potentially be a catalyst for a new Bitcoin all-time high.
