Arthur Hayes, a prominent figure in the crypto industry, stated that extended U.S. military operations linked to Iran could significantly raise federal spending. According to Hayes, mounting fiscal costs would strain the U.S. budget and could ultimately influence monetary policy decisions. In his view, such macro pressure may unexpectedly create a supportive backdrop for digital assets.
Hayes suggested that the Federal Reserve might be compelled to consider rate cuts or renewed monetary easing if deficits widen further. Citing historical precedents from past Middle East conflicts, he noted that similar periods often coincided with liquidity expansion. An increase in dollar liquidity, he argues, would likely channel capital toward risk assets, with Bitcoin standing out as a primary beneficiary.
He also emphasized that rising military expenditures could weigh on the U.S. dollar and reshape global market dynamics. In such an environment, investors seeking protection against inflation may turn to scarce digital assets. With its fixed supply and decentralized structure, Bitcoin could differentiate itself from traditional financial instruments if the Fed shifts toward a more accommodative stance.
