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In his latest blog post, titled “KISS of Death,” former BitMEX CEO Arthur Hayes outlines a provocative thesis on the trajectory of Bitcoin and broader financial markets under the renewed presidency of Donald Trump. Hayes—who has long held bullish views on crypto—argues that a convergence of fiscal and monetary policies could catapult Bitcoin’s price to as high as $1 million during the Trump 2.0 era, but only after a period of recession-driven turmoil.
Breaking Down Bitcoin’s “KISS Of Death”
Hayes’s framework revolves around the “KISS” principle—Keep It Simple, Stupid—urging market participants to stay focused on the core driver of asset prices: liquidity. Rather than overreacting to sensational headlines, he contends that one should watch for shifts in the quantity and price of money (i.e., how much credit is created and at what interest rate).
“One day, you buy and then quickly sell after digesting the next headline,” Hayes warns. “The market chops you in the process, and your stack quickly diminishes.” He recommends sticking to a simpler outlook: If the U.S. government prints significant amounts of money at lower rates, risk assets like Bitcoin can surge.
A key premise of Hayes’s analysis is that President Trump, a “real estate showman” by background, will debt finance his “America First” agenda rather than embrace austerity. Hayes contrasts Trump with Andrew Mellon—Treasury Secretary under Herbert Hoover—who once allegedly declared: “Liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate. It will purge the rottenness out of the system.”
Hayes argues that such a stance would be political suicide for a president seeking to be viewed as the 21st-century Franklin D. Roosevelt rather than Hoover. As Hayes puts it, “Trump wants to be considered the greatest President ever” and is therefore inclined to loosen credit conditions rather than tighten them.
Hayes highlights Trump’s unconventional maneuver to slash federal spending and potentially trigger a recession, thereby forcing the Federal Reserve to respond with rate cuts and fresh liquidity. The newly formed Department of Government Efficiency (DOGE), led by high-profile entrepreneur Elon Musk, is portrayed as an aggressive effort to expose fraud and reduce waste in government programs.
Hayes cites DOGE’s claims that Social Security payments may be going out to deceased individuals or unverified identities, supposedly costing hundreds of billions—or even a trillion—dollars a year. “Trump and DOGE are firing hundreds of thousands of government employees,” Hayes notes, referencing media reports citing elevated jobless claims in the Washington, D.C., area.
By cutting federal budgets so drastically and so quickly, Trump could—in Hayes’s words—“cause a recession or convince the market that one is right around the corner.”
Once signs of recession appear, Hayes predicts Federal Reserve Chair Jerome Powell will have little choice but to cut rates, end quantitative tightening (QT), and potentially restart quantitative easing (QE) to avert a widespread financial crisis. Powell, whom Hayes dubs a “turncoat traitor” (a reference to the Fed’s past rate cut during Kamala Harris’s campaign), is nonetheless bound by the Fed’s mandate to maintain economic stability.
Hayes points to $2.08 trillion in US corporate debt and $10 trillion in US Treasury debt that must roll over in 2025. If the economy slows, rolling that debt over at high interest rates becomes unfeasible. In that scenario, the Fed’s only salvation is fresh money creation and lower rates.
Hayes calculates that a full Fed response—encompassing several policy shifts—could result in as much as $2.74 to $3.24 trillion in new liquidity: Dropping the Federal Funds Rate from 4.25% to 0% could be equivalent to roughly $1.7 trillion of money printing, according to Hayes’s estimates.
Currently, the Fed conducts $60 billion per month in QT. If QT ends by April 2025, Hayes sees a $540 billion liquidity injection relative to prior expectations. Additional Treasury purchases by the Fed or US commercial banks (the latter aided by a relaxation of the Supplemental Leverage Ratio) might add another $500 billion to $1 trillion in dollar credit.
He compares this to the $4 trillion in stimulus measures during the COVID-19 pandemic. Given that Bitcoin jumped roughly 24x from its 2020 lows to 2021 highs in response to that liquidity wave, Hayes says even a more conservative 10x multiple could be in play. “For those who ask how we get to $1 million in Bitcoin during the Trump presidency, this is how,” he proclaims, linking massive credit creation with a sharply higher BTC price.
Despite his bullish long-term forecast, Hayes believes Bitcoin’s immediate outlook may be rocky. Hayes sees potential for Bitcoin to revisit the $70,000 to $80,000 range in the short-term—levels that are markedly above the prior cycle’s all-time high but still below the current market. “If Bitcoin leads the market on the downside, it will also do so on the upside,” Hayes writes, positing that BTC often bottoms out before traditional equities.
He cites the significant run-up to $110,000 around mid-January (Trump’s inauguration timeline) followed by a pullback to $78,000 in late February. “Bitcoin is screaming that a liquidity crisis is nigh, even though the U.S. stock market indices are still near their all-time highs,” he notes. “I firmly believe we are still in a bull cycle, and as such, the bottom at worst will be the previous cycle’s all-time high of $70,000,” Hayes says, underscoring his conviction that any major dips are opportunities to accumulate rather than panic-sell.
In Hayes’s view, the “Kiss of Death” is not about Bitcoin’s demise but about the outdated fiat system struggling to contain spiraling debt loads and political brinkmanship. He argues that the short-term chaos in traditional markets—triggered by DOGE-driven spending cuts and a hesitant Fed—will ultimately pave the way for a new round of monetary expansion.
The bottom line? Hayes insists that staying focused on liquidity is the best strategy: “Let politicians do politician things, stay in your lane, and buy Bitcoin.”
At press time, BTC traded at $83,725.
