BitMEX founder and crypto investor Arthur Hayes says gold and Bitcoin (BTC) are effectively replacing US Treasuries and equities as the predominant global reserve assets.
In a post on the social media platform X, Hayes says that President Trump was partially elected by Americans who feel that they didn’t share in the alleged “prosperity” stemming from going off the gold standard in 1971.
Hayes says that if the White House follows through on reducing its debt and current account deficit, then other countries will be forced to finance their economies by selling their US stocks and bonds, creating a permanent change in the global financial order since finance ministers around the world won’t take a chance that Trump will change his mind.
“THE END: Of US Treasuries and, to a lesser extent, US stocks as the global reserve asset. If the US current account deficit is eliminated, then foreigners do not have dollars to buy bonds and stocks. If foreigners have to juice up their own nations’ economies, they will sell what they own, US bonds and stocks, to fund their nation-first policies.”
The crypto investor also notes that he believes gold and Bitcoin will emerge as the winners of a shifting global financial order.
“THE RETURN:
Of gold as the neutral reserve asset. The dollar will still be the reserve currency, but nations will hold reserves in gold to settle global trade. Trump hinted at this because gold is tariff-exempt! Gold must flow freely and cheaply in the new world monetary order.
A lot of those who had it good are in the denial stage, and share a delusion that somehow things will return to ‘normal’…
For those who want to adapt to a return to pre-1971 trade relationships, buy gold, gold miners and BTC.”
Hayes also suggests that the Trump-induced economic shockwaves may have finally broken the correlation between BTC and the Nasdaq.
“BTC hodlers need to learn to love tariffs, maybe we finally broke the correlation with Nasdaq, and can move onto the purest form of a fiat liquidity smoke alarm.”
At time of writing, BTC is trading at $83,322.
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