Arthur Hayes Warns of Stealth Money Printing
Arthur Hayes, co-founder of BitMEX, has released a new essay arguing that the current weakness in global markets is an illusion. According to Hayes, the United States is quietly preparing for a new phase of hidden money creation that could soon boost risk assets like Bitcoin.
US Debt Is Growing Faster Than Buyers Can Absorb
Hayes highlights that US government debt is expanding by over two trillion dollars per year. Foreign investors are hesitant to buy Treasury bonds after witnessing the freezing of Russia’s reserves, while American banks are under pressure and households have little savings left. With no one left to absorb the swelling debt, the system is running out of cash.
The Federal Reserve’s Hidden Printing Plan
When liquidity dries up, the only entity capable of creating new dollars is the Federal Reserve. However, announcing another round of Quantitative Easing (QE) would be politically toxic and signal inflation. Instead, Hayes believes the Fed will inject liquidity quietly through the Standing Repo Facility (SRF), an instrument that allows it to lend dollars to financial institutions in exchange for collateral. He calls this hidden mechanism “Stealth QE.”
Why It Matters for Bitcoin
As the US government’s debt requires ever more dollars to sustain, the Fed’s liquidity injections will increase the supply of money in circulation. According to Hayes, this new wave of dollars will eventually flow into risk assets—first into corporations with crypto holdings, and then into Bitcoin itself.
For now, the ongoing US government shutdown and fiscal tightening make markets appear lifeless, but Hayes insists this is temporary.
Calm Before the Liquidity Storm
Hayes concludes that traders who sell their crypto now may regret it. The current stagnation, he says, is not the end of the cycle but a calm before a major expansion of dollar liquidity. When that liquidity wave hits, Bitcoin could be one of the biggest beneficiaries.
