Arthur Hayes Is Worried About Donald Trump

While Bitcoin soared to $108,000 on hopes of a government stockpile, the crypto influencer and chief investment officer at Maelstrom

Bitcoin’s price may not reach the highs that some traders are hoping for, according to crypto influencer and chief investment officer at Maelstrom, an investment firm.

While the market has been abuzz with hopes of a government Bitcoin (BTC) stockpile, thanks to pro-crypto officials in the Trump administration, Hayes is skeptical.

In his latest blog post on Thursday, the crypto influencer noted that the administration has yet to take concrete action on the matter, despite forming pro-crypto task forces.

At the same time, Trump has been swift to act on other fronts, such as drastically reducing the size of the federal government and threatening to impose 25% tariffs on Canada and Mexico.

“When Trump wants to act, he acts,” wrote Hayes, adding that his call for a retest of $70,000 to $75,000 still stands.

Bitcoin strategic reserve in focus

Looking ahead, Hayes is also keeping a close eye on the details of a potential Bitcoin strategic reserve.

The idea of a government-owned stash of crypto has been floating around in the crypto space for years, with little hope of it ever becoming a reality. However, the topic has become a hot talking point in the market.

This is largely due to the fact that Trump, and many of the pro-crypto officials in his administration, have warmed to the notion of a Bitcoin strategic reserve.

Moreover, Wyoming Republican Senator Cynthia Lummis has introduced a bill that calls for the government to commit taxpayer funds to buying 1 million BTC over the next five years.

Even though the fund may never come to pass, Hayes is already worried about who will control a digital asset stockpile and which cryptocurrencies will be included. Will it just be Bitcoin? Or will altcoins also be included?

“Creating a BSR or a national stockpile of shitcoins, including the likes of Ripple, turns any cryptos held by the government into a potent political weapon,” wrote Hayes.

A future Democrat president could sell the coins to punish crypto-friendly voters that favored Trump previously, he added.

He is also concerned about the possibility of a government-led selloff — and whether the administration would care about maximizing profit or punishing crypto-friendly voters.

“To an incoming Democrat-controlled legislature or Presidency, finding easy piles of cash to spend on goodies for their supporters is the first directive,” he said.

Hayes is not particularly bullish on Trump’s regulation plans, either.

That’s because he thinks only large players such as Coinbase and BlackRock will have the funds to interpret laws and potentially influence lawmakers.

“To all you builders globally who are relocating to America because of a perceived crypto-friendly administration, take heed,” he added.