Former BitMEX CEO Arthur Hayes forecasts the current crypto bull market will extend until 2028. His prediction stems from the US government’s strategic push to redirect global dollar flows through stablecoins.
US Government Targets Eurodollar Market Control
Hayes explained how America’s massive fiscal deficit drives its stablecoin policy ambitions at Tokyo’s WebX conference on August 25, addressing the opening session.
Hayes predicted that the US aims to channel the $10-13 trillion Eurodollar market into government-controlled stablecoin ecosystems. Treasury Secretary Scott Bessent will pressure countries globally to adopt US stablecoins. This diplomatic approach resembles historical currency expansion tactics.
Stablecoins offer Washington unprecedented control over offshore dollar deposits previously beyond US oversight. Stablecoin issuers must hold reserves in American banks and purchase Treasury bonds with the funds received. This mechanism provides the government with guaranteed debt buyers while enabling monetary policy control.
Hayes explained that through this system, Bessent can bypass the Federal Reserve to influence short-term interest rates. The analyst expects stablecoin supply to reach $10 trillion as Fed funds rates drop to 2%. These conditions should sustain the bull cycle through 2028.
DeFi Platforms Positioned for Massive Inflows
Hayes highlighted four promising DeFi projects: Ethena, Hyperliquid, Ether.Fi, and Codex. These platforms will provide yield opportunities unavailable in traditional banking systems. Massive stablecoin liquidity will create new investment possibilities across decentralized finance.
Social media platforms like Facebook and X will offer dollar accounts to Global South countries. This development could generate $4 trillion in additional Treasury demand while weakening national currency controls. Hayes described this transformation as a “once-in-a-century market opportunity” comparable to John Rockefeller’s era.
Hayes advised that investors monitor capital flows from centralized exchanges to decentralized platforms. The expanding stablecoin ecosystem will enable innovative financial services that were previously impossible under traditional banking structures.
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