Bitcoin could retest $90K as Trump's Big Beautiful Bill sets stage for liquidity crunch: Arthur Hayes
Key Takeaways
- The US Treasury's plan to refill the TGA may temporarily contract dollar liquidity, which could impact Bitcoin's price and risk a $90,000 retest.
- Investors are reallocating portfolios toward staked USDe and reducing altcoin exposure amid market uncertainty driven by liquidity concerns.
President Trump’s One Big Beautiful Bill could hike the US debt ceiling, potentially triggering a sizeable liquidity drain that eventually puts pressure on Bitcoin’s price, said Arthur Hayes, BitMEX co-founder and well-known macro voice in crypto, in his new article .
According to Hayes, Trump’s upcoming spending package, which is scheduled for a final House vote today, will unlock new borrowing capacity for the US Treasury. This would allow the Treasury to refill its Treasury General Account (TGA), which has been drawn down to keep the government running since the start of the year.
The TGA currently sits at $364 billion and is expected to return to a target of $850 billion once the debt ceiling is lifted. That means a refill would drain nearly $500 billion in liquidity from the markets, which could create a headwind for Bitcoin and other risk assets, Hayes noted.
In this scenario, Bitcoin could retest the $90,000 to $95,000 range before resuming its long-term uptrend, he suggested.
However, Hayes added that if markets digest the bond issuance smoothly, Bitcoin could remain range-bound in the $100,000s, though unlikely to break the all-time high of $112,000 before September.
“If the TGA refill proves to be dollar liquidity negative, then the downside is $90,000 to $95,000. If the refill proves to be a nothingburger, Bitcoin will chop in the $100,000s without a decisive break above the $112,000 all-time-high,” the analyst stated.
Hayes expects markets to drift sideways to slightly lower between now and Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium in August. He believes Powell may signal the end of quantitative tightening or unveil regulatory changes at the event.
If it happens, the analyst believes it could result in a liquidity surge, which, combined with political incentives for Republicans to ramp up spending before the 2026 midterms, could re-accelerate Bitcoin’s rally into year-end.
Bitcoin was trading at about $109,200 at press time, edging closer to its all-time high, per TradingView .
The $10 trillion liquidity bomb
Hayes remains bullish on Bitcoin’s long-term trajectory, despite a potential short-term dip tied to the US Treasury’s liquidity drain.
While the upcoming refill of the Treasury General Account could weigh on markets, he sees it as a temporary setback rather than a trend reversal.
Hayes believes over ten trillion dollars in liquidity could eventually enter the system through structural shifts like stablecoin adoption by major banks and the possible end of the Fed’s interest payments on reserves.
“Some of you are still waiting for monetary Godot. You are waiting for Fed Chairperson Powell to announce another round of unlimited QE and rate cuts before you sell bonds and buy crypto. It ain’t happening, at least not until the US definitely enters a kinetic war against Russia, China, and/or Iran, or a large systemically important financial institution is on the brink of collapse,” Hayes stated.
“And if you’re still waiting for Powell to whisper “QE infinity” in your ear before you go risk-on, congrats—you’re the exit liquidity,” he added.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Micron now earns more than Apple! Apple urgently needs chips, Micron holds pricing power.
Micron Technology reported a net profit of $37.7 billion in the fourth fiscal quarter, surpassing Apple's $29.8 billion for the same period, thus becoming the more profitable company for the quarter. The memory shortage has given Micron strong pricing power, with its CEO stating that they “cannot meet customer demand.” The revenue guidance for next quarter is as high as $61.5 billion. Meanwhile, Apple's gross margin continues to be pressured by persistent memory costs, having dropped from 49.3% to a guidance range of 46.5%.
The "Eye of the Storm" in the Global Economy: Debt Crisis in Developed Countries
The IMF warns that developed economies are becoming the "eye of the storm" for global debt risks. Countries such as the United States and France accumulated high levels of debt during periods of low interest rates, but now rising interest rates are pushing up repayment costs, and fiscal consolidation faces political resistance. BofA Securities points out that the United States is facing declining tax revenues, France has structural income decline issues, and the UK and Japan are also under pressure. The deteriorating debt sustainability of developed countries may impact global financial markets through shocks in interest rates and capital flows.

The US market narrative undergoes a "dramatic reversal": shifting from "AI-driven deflation and controllable US debt" to "AI squeezing the bond market, and Bassen unable to control long-term interest rates"
Deutsche Bank points out that the market narrative regarding the U.S. economy has shifted from "AI drives down inflation" to "AI-related bond issuance pushes up U.S. Treasury yields," but pessimism may be overdone. The bank believes that the real risks underestimated by the market are security incidents in the AI ecosystem, failed IPOs, or underwhelming revenues, which could undermine the dollar and support the bond market. In addition, France's fiscal difficulties are putting new pressure on the euro.