From Yahoo Finance: 2025-06-21 09:16:00

A stablecoin frenzy is escalating in public equity markets, with Circle’s (NYSE: CRCL) listing marking the start of this bubble. The stock has surged over 140% in nine days, reaching a $36 billion valuation amidst growing stablecoin buzz. U.S. Treasury projects a $2 trillion stablecoin market, sparking investor optimism.

BitMEX founder Arthur Hayes warns of an overheated stablecoin market, cautioning against new entrants aiming for profits. He believes that distribution channels are closed, with exchanges, social media giants, and legacy banks dominating. Hayes predicts a bubble burst as copycat issuers with sky-high valuations emerge, leading to investor losses.

Hayes advises against shorting the stablecoin craze, as new stocks may outperform expectations. His family office hints at speculative bets to capitalize on the momentum. Despite skepticism about the long-term sustainability of stablecoins, Hayes emphasizes the profitability potential of the current trend.

Hayes urges investors to trade cautiously in the unstable stablecoin market, emphasizing the need for vigilance amid increasing valuations and promises of financial integrations. He predicts a collapse triggered by high-risk financial engineering, leading to substantial losses. Warning against shorting, Hayes sees profit opportunities in speculative bets.



Read more at Yahoo Finance: ‘Trade This S–t Like You Would A Hot Potato’