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Bitcoin and JPMorgan Will Soar on the Back of Big Bank Stablecoins: Hayes
In a recent blog post, BitMEX founder Arthur Hayes has predicted that stablecoins issued by large US banks will have a profound impact on the cryptocurrency market, specifically predicting a surge in prices for Bitcoin and JPMorgan. According to Hayes, this development could potentially unlock trillions of dollars in buying power, which would be a game-changer for the industry.
According to Hayes, the premise behind this forecast is driven by Treasury Secretary Scott Bessent’s agenda to engineer a liquidity injection that resembles past Federal Reserve interventions. However, instead of overt money printing, this will be achieved through financial innovation and regulatory tweaks.
Hayes believes that this stealthy liquidity injection strategy has two massive beneficiaries: Bitcoin and JPMorgan. He highlights that JPMorgan’s stablecoin, JPMD, enables it to digitize deposits, eliminate compliance costs, and earn a risk-free spread by purchasing US Treasury bills. This would allow the bank to potentially double or triple its market capitalization.
Furthermore, Hayes suggests that regulatory changes such as the GENIUS Act could essentially hand “too big to fail” banks a monopoly on stablecoins, thereby locking out fintech firms like Circle. He argues that the adoption of stablecoins by these major banks creates up to $6.8 trillion in Treasury bill buying power.
The prediction also extends to Ethereum, which would benefit indirectly through its involvement with JPMorgan’s JPMD stablecoin. This is because JPMD will ride on Base, a layer-2 operated by Coinbase built on top of the Ethereum network. As such, the asset will utilize Ethereum infrastructure, thereby increasing demand for the network’s blockspace, layer-2s, and validators.
While Hayes did not explicitly state that Ethereum would soar alongside Bitcoin and JPMorgan, the indirect connection to the stablecoin’s infrastructure implies a potential boost in value.
Source: cryptopotato.com
