by Coinstrooper Crypto Articles
Quick Take
  • Former BitMEX CEO Arthur Hayes has released his most audacious Bitcoin prediction yet, forecasting the cryptocurrency will reach $3.4 million by 2028.
  • His model assumes the Fed will purchase 50% of new Treasury debt issuance while bank credit expands by $7.569 trillion during Trump’s remaining term.
  • The analysis focuses on Bessent’s plan to regain control of the Federal Reserve through strategic board appointments and regulatory pressure.
  • Trump needs four seats for a Federal Reserve Board of Governors majority to manipulate short-term rates through the Interest on Reserve Balances mechanism.

What Happened

Hayes, who manages the Maelstrom investment fund, bases his calculation on an estimated $15.229 trillion in combined Federal Reserve and commercial banking credit growth through 2028.

This policy shift would force Eurodollar depositors toward compliant stablecoin issuers like Tether, which invest exclusively in U.S. bank deposits and Treasury bills.

Market Context

Hayes identifies potential allies in Governors Bowman and Waller, who dissented at recent Federal Open Market Committee meetings, as well as newly confirmed Stephen Miran, bringing Trump’s camp to three supporters.

Hayes argues that the administration only needs three out of four new voting governors to secure Federal Open Market Committee control, which will enable the printing of money to purchase Treasury debt that private markets won’t buy.

The strategy extends beyond traditional banking to capture $21 trillion in Global South retail deposits through U.S. social media platforms equipped with crypto wallets.

Central banks in emerging markets would lose monetary control as citizens adopt dollar-pegged stablecoins for daily transactions.

Adding European bank deposits of $16.74 trillion creates a total addressable market of $34 trillion for stablecoin conversion.

The forced adoption would create price-insensitive demand for Treasury bills, allowing Bessent to offer yields lower than Fed Funds rates while maintaining profitability for stablecoin issuers.

Why It Matters

Former BitMEX CEO Arthur Hayes has released his most audacious Bitcoin prediction yet, forecasting the cryptocurrency will reach $3.4 million by 2028.

The prediction hinges on Treasury Secretary Scott Bessent implementing yield curve control policies that could trigger massive money printing, creating what Hayes calls a “once in a century change of the global monetary architecture.“

In his last month’s blog post, Hayes outlines how Bessent could redirect $10-13 trillion in Eurodollar deposits by threatening to withdraw Federal Reserve support for foreign banks during future financial crises.

Local governments lack effective responses beyond internet shutdowns, while the Trump administration could wield sanctions against officials who resist stablecoin proliferation by threatening their offshore wealth holdings.

This mechanism could give the Treasury control over short-term interest rates regardless of Federal Reserve policy decisions.

Details

Trump Administration Targets Federal Reserve Control

His model assumes the Fed will purchase 50% of new Treasury debt issuance while bank credit expands by $7.569 trillion during Trump’s remaining term.

The analysis focuses on Bessent’s plan to regain control of the Federal Reserve through strategic board appointments and regulatory pressure.

Hayes nicknamed the Treasury Secretary “Buffalo Bill” for his anticipated dismantling of the Eurodollar banking system, comparing the strategy to seizing control of foreign non-dollar deposits worth an estimated $34 trillion globally.

Trump needs four seats for a Federal Reserve Board of Governors majority to manipulate short-term rates through the Interest on Reserve Balances mechanism.

Fed Governor Lisa Cook faces mounting pressure to resign over alleged mortgage fraud accusations from Federal Housing Finance Agency head Bill Pulte.

The Department of Justice is reviewing whether to seek a grand jury indictment for bank fraud, which Hayes believes will force Cook’s departure by early 2026.

Meanwhile, Trump’s team plans to replace Fed district bank presidents during the February 2026 elections.

Stablecoin Infrastructure to Absorb Global Banking Deposits

Hayes envisions WhatsApp providing seamless stablecoin payment functionality to users in countries like the Philippines, effectively creating digital dollar bank accounts for billions while bypassing local banking regulations.

European deposits face similar pressure as Hayes predicts the euro’s collapse due to Germany-first and France-first policies splintering the currency union.