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

BlockBeats News, February 6th, Arthur Hayes today released a blog post stating that Bitcoin's strategic reserve policy is very poor. "The fundamental problem with any government hoarding asset is that they buy and sell the asset primarily for political, not financial, gain." This policy may change as the political landscape changes, thereby altering Bitcoin's original trajectory.

Regarding the upcoming crypto legislation, Arthur Hayes is equally pessimistic: "Those who are building technology and applications that are truly decentralized do not have enough resources at this critical juncture in the cycle to play politics. Therefore, the desire for cryptocurrency regulation may come to fruition, and if it does, it will appear in an overly complex, highly prescriptive form that only large, wealthy centralized companies can afford."

Thus, 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 allows for permissionless cryptocurrency innovation can the current market situation be improved.