Arthur Hayes warns against U.S. bonds, says Bitcoin and banks will drive stablecoin liquidity

Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, argues that buying U.S. government bonds is a mistake, even though many financial advisors recommend them, according to his Substack post. He believes it's smarter to invest in Bitcoin (BTC) or the Nasdaq, which offer far greater upside potential. Hayes also warns that the U.S. government's support for stablecoins isn’t meant to benefit fintech companies like Circle, but rather to empower large traditional banks. He claims stablecoins are being used as a liquidity weapon, allowing big banks to purchase massive amounts of government debt without relying on the Federal Reserve’s (Fed) quantitative easing. In his view, the market is already awash in liquidity, even if the Fed hasn’t officially restarted quantitative easing. He advises investors to focus not on Circle or fintechs, but on the U.S. government and major banks as the real drivers of the stablecoin narrative.