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Max Keiser warns that stablecoin issuers’ use of Treasury yields to buy Bitcoin could undermine US government reserves, raising concerns in financial circles.
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Tether plans another dollar-pegged stablecoin, projecting the stablecoin market to potentially hit $2 trillion by 2028 and spurring institutional adoption.
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Keiser predicts Bitcoin will reach $200,000, prompting panic buying among governments and individuals misled by stablecoins.
Explore how stablecoin proliferation might drive Bitcoin prices higher, with insights from Max Keiser on the implications for the broader financial landscape.
Crypto News of the Day: Stablecoins Could Send Bitcoin Price Over $200K, Max Keiser
Crypto markets continue to witness growing institutional adoption, with inflows into digital asset investment products surging to $2 billion last week. The ongoing discussion centers around the implications of stablecoins on Bitcoin’s value and market dynamics.
The Trump family’s World Liberty Financial (WLFI) is making headlines on the stablecoin front. Its USD1 stablecoin recently surpassed the $2 billion market capitalization threshold, showcasing the growing interest in stable digital assets.
In the same tone, Tether is reportedly considering another dollar-pegged stablecoin, despite already being the issuer of USDT, the largest stablecoin by market cap metrics.
Amid surging adoption, the US Treasury forecasts a $2 trillion market cap for the stablecoin sector by 2028, indicating substantial growth potential.
“Evolving market dynamics, structures, and incentives have the potential to accelerate stablecoins’ trajectory to reach ~$2 trillion in market cap by 2028,” according to a recent Treasury report.
In a recent commentary, Bitcoin pioneer Max Keiser warned that stablecoins could “work the US dollar to death” and exacerbate US debt levels. He expressed concerns about the growing use of stablecoins, which he believes diverts attention away from Bitcoin.
Keiser argues that this shift benefits stablecoin issuers, who leverage interest from their Treasury holdings to acquire Bitcoin at lower prices. However, he warns that such dynamics could undermine proposals like the US Strategic Bitcoin Reserve, intended to bolster national holdings of Bitcoin.
“The stablecoin issuers are the last bastion of dollar demand globally as de-dollarization threatens to decapitalize the US economy,” Keiser noted in an interview.
He explained that stablecoin issuers utilize interest from the Treasuries they acquire to buy Bitcoin under $100,000, which could detract from the government’s Bitcoin purchasing efforts.
US Dollar Value To Diminish Relative to Bitcoin
Keiser believes that once Bitcoin crosses the $200,000 threshold, panic buying will ensue from individuals and governments misled by stablecoin issuers.
“As Bitcoin crosses $200,000 panic buying by people and governments who’ve been hoodwinked by stablecoin issuers will accelerate,” he remarked, foreseeing a shift in market dynamics.
He further posited that all fiat currencies, including the Yen and Euro, would eventually devalue against the US dollar and its stablecoin counterparts before the dollar itself diminishes in value relative to Bitcoin.
“This is how Bitcoin tops $2,200,000 a coin this cycle,” Keiser concluded, making a bold prediction about Bitcoin’s future.
In a prior publication, COINOTAG highlighted Keiser’s assertion that Bitcoin could achieve $2.2 million per coin, driven by institutional interest and competition in the crypto space.
Chart of the Day
This chart reveals that the stablecoin market cap has surged nearly $40 billion in 2025, increasing from $203.372 billion on January 1 to $242.977 billion as of this writing—a remarkable 19.47% rise within just five months.
Byte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
- Market shrugs off Trump tariffs with $2 billion crypto inflows, marking the third straight week of gains and bringing the three-week total to $5.5 billion.
- Tether is launching Tether.ai, an open-source AI platform combining blockchain technology for decentralized AI agent deployment.
- Bitcoin dominance hit 64.98% in early May, its highest since 2021, stirring debate on the timing of the next altcoin season.
- Elon Musk changed his X name to “gorklon rust,” sparking a meme coin rally.
- Solana patched a critical bug in its Token-2022 standard that enabled unauthorized minting and asset withdrawals.
- Five US economic indicators with crypto implications this week include ISM services, the US trade deficit, the FOMC meeting, Powell conference, and consumer credit.
- Indonesia suspends Worldcoin and WorldID over unregistered operations and misuse of another firm’s legal certification.
- Bitcoin’s price dips below $95,000, with a potential decline to $90,000 amidst growing bearish sentiment.
Crypto Equities Pre-Market Overview
| Company | At the Close of May 2 | Pre-Market Overview |
| Strategy (MSTR) | $394.37 | $384.40 (-2.53%) |
| Coinbase Global (COIN) | $204.93 | $201.20 (-1.82%) |
| Galaxy Digital Holdings (GLXY.TO) | $26.84 | $29.95 (+11.60%) |
| MARA Holdings (MARA) | $14.48 | $14.11 (-2.56%) |
| Riot Platforms (RIOT) | $8.39 | $8.24 (-1.79%) |
| Core Scientific (CORZ) | $8.74 | $8.61 (-1.49%) |
Stay informed with the latest cryptocurrency market developments and implications for the evolving financial landscape.
Conclusion
This article offers insights into the regulatory and market dynamics affecting Bitcoin and stablecoins. As stablecoin adoption increases, the potential for significant shifts in Bitcoin valuation looms large, with experts like Max Keiser cautioning against the economic ramifications of these trends.
