Bitcoin Price Predictions by Arthur Hayes Under the Impact of Bank-issued Stablecoins
In the ever-evolving world of cryptocurrencies, US bank-issued stablecoins are making a significant impact. These digital assets, backed by traditional fiat currencies, are providing much-needed regulatory clarity, boosting market liquidity, and fostering institutional adoption.
The recent US legislation, particularly the GENIUS Act, has opened the door for federally regulated banks like JPMorgan and Bank of America to issue compliant stablecoins. This move has led to a significant surge in stablecoin supply and market capitalization. As of June 2025, the total stablecoin circulation exceeded $255 billion, with projections to reach an impressive $1.6 trillion by 2030. Daily trading volumes of these stablecoins now surpass $100 billion, contributing to massive on-chain transaction volumes, surpassing traditional payment giants like Visa and Mastercard.
The GENIUS Act, by defining stablecoins as payment tools rather than investments, reduces regulatory uncertainty, encouraging banks and institutional players to launch stablecoins. This influx of new players and capital fosters competition and innovation in the crypto ecosystem.
According to BlackRock analysts, the rise in compliant US bank-issued stablecoins is expected to drive a major surge in Bitcoin's price. This is because stablecoins improve liquidity and usability of cryptocurrencies for digital payments, enhancing Bitcoin's role as a store of value and investment asset.
Although stablecoins currently represent about 7% market share of total crypto capitalization, their rapid adoption since 2020 and regulatory backing are strengthening the broader cryptocurrency market infrastructure and positive price momentum.
In summary, US bank-issued stablecoins, underpinned by recent regulatory clarity, are acting as catalysts to increase liquidity and legitimacy in the crypto space, thereby supporting upward price trends in Bitcoin and stimulating growth across the overall cryptocurrency market as of mid-2025.
Meanwhile, Bitcoin, currently priced at $118,893.10 with a market cap of $2.37 trillion, a 24-hour trading volume of $66.99 billion, and a dominance of 60.64%, continues to dominate the crypto market.
The Coincu research team notes the increased institutional interest in cryptocurrencies and the historical trend of regulatory actions impacting crypto markets. The involvement of major institutions, such as Cartwright Pension Trusts, investing in Bitcoin signifies a growing trend of corporate treasuries diversifying with crypto assets.
However, not everyone agrees on the direction of Bitcoin's price. Arthur Hayes, former BitMEX CEO, predicts a temporary dip in Bitcoin's value to $90,000 due to the influence of US bank-issued stablecoins.
John Kojo Kumi, a cryptocurrency researcher and writer, provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations. His expertise spans content strategy, SEO optimization, and technical research. He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi.
As the crypto market continues to evolve, it's clear that stablecoins are playing a crucial role in its growth and development. Whether this trend continues remains to be seen, but one thing is certain: the crypto market is a space to watch.
- The surge in US bank-issued stablecoins, such as those from JPMorgan and Bank of America, is not only increasing market capitalization but also fostering competition and innovation in the cryptocurrency ecosystem, according to analysts.
- As the crypto news circulates about the growing participation of institutions like Cartwright Pension Trusts in investing in Bitcoin, the role of stablecoins in improving liquidity and usability of cryptocurrencies is seen as a major driver for Bitcoin's function as a store of value and investment asset.
- Despite Arthur Hayes' prediction of a temporary dip in Bitcoin's value to $90,000 due to the influence of US bank-issued stablecoins, John Kojo Kumi, a cryptocurrency researcher and writer, remains optimistic about the long-term growth potential of the cryptocurrency market, particularly decentralized finance (DeFi), NFTs, and Web3 innovations.
- In the broader context of the ever-evolving cryptocurrency landscape, technology continues to play a pivotal role, especially in the area of tokenomics, as it shapes the future of crypto trading, finance, and investment.