Arthur Hayes Criticizes US Bitcoin Reserve Strategy: Political Weaponization Concerns

Arthur Hayes, former CEO of BitMEX and current Chief Investment Officer at Maelstrom Fund, has expressed strong concerns about the U.S. government’s approach to its Bitcoin reserves. He argues that the strategy carries political risks, potentially impacting market stability. 198,012 BTC, a significant portion of the reserve, are comprised of assets seized through legal actions, not direct market purchases. This absence of new funding for Bitcoin further fuels Hayes’ skepticism about the initiative’s financial rationale and suggests potential for sudden market volatility if these assets were to be quickly liquidated.