Arthur Hayes: Pessimistic on Bitcoin's Strategic Reserve Policy, Still Believes Bitcoin Will Retreat to $70-75K

On February 6th, Arthur Hayes released a blog post today stating that the strategic reserve policy of Bitcoin is extremely poor. "The fundamental issue with any government hoarding an asset is that they buy and sell the asset mainly for political rather than financial gain." This policy may change as the political landscape shifts, thereby altering the original trajectory of Bitcoin. Regarding the upcoming crypto legislation, Arthur Hayes is equally pessimistic: "Those who are building truly decentralized technologies and applications do not have sufficient resources at this critical juncture in the cycle to engage in politics. Therefore, the desire for cryptocurrency regulation may come to fruition, and if it does, it will take on an overly complex and highly prescriptive form that only large, wealthy centralized companies can afford." Consequently, Arthur Hayes still believes that Bitcoin will retest $70,000 to $75,000. Only if the Federal Reserve, the US Treasury, Japan, or other entities print money in some form or implement specific legislation that enables permissionless cryptocurrency innovation can the current market situation be improved.