In a bold announcement, former BitMEX CEO Arthur Hayes has made a striking prediction regarding Bitcoin, estimating that the cryptocurrency could soar to $3.4 million by 2028. This ambitious forecast relies heavily on anticipated policies from Treasury Secretary Scott Bessent, particularly the implementation of yield curve control. Hayes argues that such measures could initiate significant money printing, contributing to what he describes as a “once in a century change” in the global monetary landscape.
Managing the Maelstrom investment fund, Hayes supports his prediction with projections of $15.229 trillion in combined credit growth from the Federal Reserve and commercial banks through 2028. His model suggests that the Fed will buy 50% of newly issued Treasury debt and that bank credit will expand by $7.569 trillion during Donald Trump’s anticipated tenure.
A major component of Hayes’s analysis is Bessent’s potential strategy to take control of the Federal Reserve through targeted board appointments and regulatory pressure. He has labeled Bessent “Buffalo Bill” for his expected assault on the Eurodollar banking system—a strategy akin to seizing control of an estimated $34 trillion in foreign non-dollar deposits.
For this plan to materialize, Hayes notes that Trump requires four appointees to secure a majority on the Federal Reserve Board of Governors. He identifies allies among existing members, including Governors Bowman and Waller, and newly confirmed Stephen Miran, indicating a shift in the political landscape surrounding Fed governance.
Amid these developments, Fed Governor Lisa Cook faces increasing calls for her resignation over allegations of mortgage fraud. With the Department of Justice reportedly considering a grand jury indictment, it’s expected that Cook could depart by early 2026.
In addition to reshaping the Fed, Trump’s administration is poised to influence Fed district bank presidents during elections set for February 2026. Hayes contends that securing three out of four new voting governors will enable control over the Federal Open Market Committee, facilitating money printing to absorb Treasury debt that the private market may shy away from.
Moving beyond conventional banking, Hayes envisions a shift in Eurodollar deposits, potentially redirecting $10-13 trillion through stablecoin issuers like Tether, which predominantly invest in U.S. bank deposits and Treasury securities. He predicts a seamless digital financial ecosystem through U.S. social media platforms, particularly WhatsApp, enabling stablecoin transactions in emerging markets and effectively bypassing local banking regulations.
This strategic move could diminish the monetary control of central banks in developing countries, as citizens adopt dollar-pegged stablecoins for everyday transactions. Hayes warns that local governments may struggle to counteract this trend, potentially resorting to internet shutdowns while the Trump administration leverages sanctions against officials resisting stablecoin proliferation.
European banking communities may face similar challenges, with Hayes forecasting potential instability in the euro due to diverging national interests among member states. The total market for stablecoin conversion could reach $34 trillion when considering European bank deposits, further pressuring traditional financial systems.
This proactive approach to stablecoins would create a price-insensitive demand for Treasury bills, allowing the Treasury to control short-term interest rates independent of the Federal Reserve’s directives.
Despite his audacious predictions for Bitcoin and decentralized finance (DeFi), Hayes recently divested his entire HYPE position for a profit of $823,000. He justified his exit with plans to purchase a Ferrari Testarossa, noting that he sold a substantial number of tokens just weeks ahead of significant unlocks that are expected to exert pressure on the token’s value.
This market activity coincided with noteworthy withdrawals by major investors, including a whale that pulled out $122 million in HYPE tokens, indicating trepidation around impending token unlock events.
Hayes maintains a steadfast target of $250,000 for Bitcoin by 2025, but he cautions investors against impulsive strategies that might lead to losses. He emphasizes the importance of a long-term perspective, especially when analyzing Bitcoin’s performance compared to traditional markets adjusted for inflation.
