BitMEX co-founder Arthur Hayes has decisively flipped bullish and even announced that Maelstrom Fund is backing up the truck. The execs comments came as Bitcoin (BTC) broke through its all-time high above $118K on strong volume.

He also revealed that Ethereum (ETH) began to follow with potential outperformance, and markets began pricing in a Trump administrations readiness to ease trade tensions.

From Bearish to Bullish

This pivot follows Hayes prior cautious stance, which was rooted in concerns about a Treasury General Account (TGA) refill draining liquidity.

In his previous essay, Hayes explained that the US Treasury Secretary, whom he calls The Big Bessent Cock (BBC), faces an impossible task: funding ballooning deficits without causing a bond market revolt. To manage this, the government is turning to innovative liquidity engineering, including stablecoin adoption by too big to fail (TBTF) banks, which could unlock up to $6.8 trillion in T-bill buying power.

Hayes also noted that if the Fed stops paying interest on reserves, it could unleash another $3.3 trillion, bringing the total potential liquidity injection to $10.1 trillion.

He argued this approach was the modern replacement for QE, by maintaining equity markets and crypto afloat despite the Feds tightening posture. The exec warned that the TGA refill could briefly interrupt cryptos bull momentum.

Despite this, Bitcoins resilience in busting through resistance while Ethereum appears to be positioning for a monster alt season.

Frontloading Ahead of Trump Tariffs

Adding to this backdrop, QCP Capital, in its latest analysis, also identified frontloading ahead of potential Trump tariffs as a key macro driver. Manufacturers are accelerating imports and production to preempt implementation, which has led to increased trade and manufacturing credit and improved liquidity conditions.

The firm views the current environment as supportive for continued crypto upside, with steady ETF inflows and strong structural demand boosting momentum.