Crypto trader Arthur Hayes has suggested that gold and Bitcoin 
$78,415 could replace traditional American treasury bonds and stocks. In a post on social media, he pointed out that the global reserve system is gradually changing. Hayes emphasized that changes in economic policy will impact the international financial balance.
Shifts in the Global Reserve System
Hayes indicated that if the United States succeeds in reducing its debt and current account deficits, other countries may divest from American assets to support their economies. He noted that this scenario could lead to a permanent alteration in the structure of reserve assets worldwide. According to assessments, potential tightening in current monetary policies might facilitate new balances within the global financial system.
Arthur Hayes: “THE END: American treasury bonds and stocks will cease to be global reserve assets. If the current account deficit disappears, foreigners will divest their assets and focus on national-centric economic policies.”
Economic Policies and Their Impact
Hayes argued that U.S. President Trump’s economic policies are a response to a sense of wealth deficiency experienced by some Americans since the departure from the gold standard in 1971. Furthermore, if countries manage to control their debt and deficits, American dollar-denominated assets are expected to start changing hands in the global market. It is crucial for investors to be prepared for this transition.
Arthur Hayes: “THE RETURN: Gold is returning as a neutral reserve asset. The dollar will remain the reserve currency, but settlements in trade will be conducted in gold.”
Should You Invest in Bitcoin?
Hayes highlighted that the global financial order is evolving, urging investors to consider gold, gold mining companies, and Bitcoin. He also noted that economic shocks stemming from Trump have altered the correlation between Bitcoin and the Nasdaq index. This shift is believed to bring noticeable changes in market dynamics. If Bitcoin closes above $77,000 on Monday, Hayes may be vindicated, as it was attempting to breach the $78,000 mark at the time of writing.
Additionally, fluctuations in Bitcoin’s market value are being closely monitored alongside global economic developments. The ongoing transformation in the cryptocurrency market signals a new environment requiring investors to diversify their portfolios.
The reshaping of global financial balances is seen as a significant factor influencing the future trajectory of economic policies. This transitional process may necessitate new criteria for strategic planning among investors.
