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The U.S. Capital Controls Will Be a Catalyst for Bitcoin
Subtly Mocking Europe’s Communist Agenda
Arthur Hayes Recommends Selected Altcoins
Arthur Hayes pointed out that while the Trump administration once vigorously raised tariffs between the U.S. and China, political realities and voter pressure quickly led to a shift in strategy. He anticipates that the U.S. will adopt a strategy of “tax-based capital controls,” levying annual holding taxes (such as 2%) on U.S. stocks, bonds, and real estate held by foreign investors, thereby weakening the capital account surplus, promoting dollar depreciation, and ultimately lowering imports while stimulating domestic manufacturing.
As capital controls are implemented, foreign capital will be forced to withdraw from U.S. financial assets and turn to “borderless assets” such as gold and Bitcoin. Hayes stated:
“Bitcoin is a digital bearer asset that can be transferred or stored without intermediaries, making it the ideal capital safe haven during the global financial restructuring process.”
Moreover, as foreign capital reduces its allocation in U.S. Treasuries, stock markets, and real estate due to capital taxes, the U.S. financial markets will face systemic pressure. At that time, the Federal Reserve and the Treasury will be compelled to intervene and flood the market with liquidity. Arthur Hayes expects that a series of money printing measures will become the core driving force for Bitcoin to reach one million dollars.
“The repatriation of foreign capital and the depreciation of massive U.S. national debt will become the two major catalysts pushing Bitcoin’s price to reach one million dollars from now until 2028.”
Arthur Hayes further explained that the reason for setting the date in 2028 is that it coincides with the next U.S. presidential election. Who will be elected then and what policies will be implemented will trigger significant market fluctuations.
During Trump’s administration, the U.S. has indeed promoted several crypto-friendly policies. In contrast, Europe has shown a more pronounced regulatory trend towards cryptocurrencies, with many governments even hoping to restrict or suppress ordinary citizens’ use of crypto assets, highlighting a gradual divergence in global policy direction.
Arthur Hayes stated:
“Even China has not banned individual ownership of Bitcoin because they know such practices are ineffective and unachievable. As for you poor Europeans, the communism your governments are implementing is even less effective than that of China. Don’t expect the European Central Bank (ECB) to learn this lesson without trying it themselves. So, I advise you: transfer your money out now!”
In addition to Bitcoin, Arthur Hayes is also optimistic about a few application-based tokens with actual revenue sources and user bases. He specifically named PENDLE and ETHFI, with the former focusing on the crypto fixed-income market and the latter dedicated to creating a Web3 wealth management platform. He noted that these types of projects that have “real revenue and profit-sharing” will outperform Bitcoin as “a select few tokens” during the bull market.