Arthur Hayes Argues Gold and Bitcoin Are Superseding US Treasuries as Global Reserve Assets

Summary

• US Reserve Asset Dominance Ending: Arthur Hayes argues that the era of US Treasuries and, to a lesser extent, US stocks as the primary global reserve assets is coming to an end.

• Gold and Bitcoin as Successors: Hayes posits that gold will regain its role as a neutral reserve asset for trade settlements, and Bitcoin will emerge as a critical reserve asset in this new global financial order.

• Trump’s Policies Driving the Shift: Hayes believes President Trump’s policies, aimed at reducing US debt and current account deficit, are the catalyst for this change, forcing nations to re-evaluate their reserve asset strategies and shift towards gold and Bitcoin.

BitMEX founder and cryptocurrency investor Arthur Hayes posits that gold and Bitcoin (BTC) are effectively taking the place of US Treasuries and equities as the world’s dominant reserve assets.

In a social media post on X, Hayes suggests that President Trump‘s election victory partly reflects a sentiment among American voters who believe they did not benefit from the economic outcomes following the abandonment of the gold standard in 1971.

Hayes contends that should the White House proceed with its stated objectives of reducing US debt and the current account deficit, foreign nations will need to liquidate their holdings of US stocks and bonds to finance their domestic economies.

He argues this will create a fundamental shift in the global financial structure as international finance ministers are unlikely to assume that Trump might reverse these policies.

Hayes states: “The era of US Treasuries and, to a lesser degree, US stocks as primary global reserve assets is ending.

If the US eliminates its current account deficit, foreign entities will lack the dollars to invest in US bonds and equities.

To stimulate their economies, these nations will divest from US bonds and stocks to fund their ‘nation-first’ agendas.”

Gold and Bitcoin Predicted to Benefit from Global Financial Reordering

The cryptocurrency investor further indicates his belief that gold and Bitcoin are positioned to be primary beneficiaries in this evolving global financial system.

“A return to gold as a neutral reserve asset is anticipated,” Hayes elaborates.

“While the US dollar will remain a key reserve currency, nations will increasingly hold gold reserves to facilitate international trade settlements.

Trump has alluded to this shift, emphasizing gold’s tariff-exempt status. In this new global monetary landscape, gold must move freely and at low cost.”

Hayes observes that many stakeholders are currently in a state of denial, clingiNasdaq ng to the notion that previous conditions will resume.

“For those seeking to adapt to a restoration of trade dynamics reminiscent of the pre-1971 era, the recommended strategy is to invest in gold, gold mining companies, and BTC,” he advises.

Hayes also proposes that the economic disruptions initiated by Trump might have finally broken the previously observed correlation between Bitcoin and the Nasdaq stock index.

“Bitcoin holders should view tariffs favorably,” Hayes concludes.

“This development might signal the end of Bitcoin’s correlation with the Nasdaq, allowing Bitcoin to operate more purely as an indicator of fiat currency liquidity issues.”

Also Read: BitMEX Founder Arthur Hayes Reports ‘Massive Trade’ as Bitcoin and Crypto Markets Rise

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