Arthur Hayes Predicts Temporary Dip in Bitcoin Amid U.S. Liquidity Contraction

Key Points:

  • Arthur Hayes forecasts Bitcoin short-term dip due to Treasury actions.
  • Long-term view remains bullish with Bitcoin potentially reaching $1 million by 2028.
  • Liquidity contraction could temporarily impact the crypto market’s volatility.

The cryptocurrency market keenly anticipates a shift following Arthur Hayes’s latest analysis predicting that U.S. Treasury actions may influence Bitcoin prices. Market participants weigh potential impacts on asset fluctuation leading into Federal Reserve Chairman Jerome Powell’s August address.

Hayes Warns of a $486 Billion U.S. Liquidity Impact

Bitcoin’s Potential Price Movements Amidst Liquidity Shifts

Arthur Hayes, a recognized voice in cryptocurrency markets, highlighted potential U.S. liquidity contractions resulting from the “Big Beautiful Act.” The legislation, which aims to raise the existing debt ceiling, might lead to a temporary market adjustment. Hayes suggests a possible shrink in liquidity by $486 billion from replenishing the Treasury General Account between $364 billion and $850 billion.

Changes anticipated involve Bitcoin’s price possibly dipping to the $90,000–$95,000 range. However, limited impact might see Bitcoin around $100,000 without breaking past its recent high. Investors are keenly watching these developments for clearer signals.

“Bitcoin will hit $1 million before 2028… a combination of Trump’s economic policies and rising global instability will drive investors away from US government debt… they’ll plough into Bitcoin.” – Arthur Hayes, CIO, Maelstrom

Historical Context, Price Data, and Expert Analysis

Did you know? During the 2023 U.S. debt ceiling negotiations, similar TGA-related liquidity contractions temporarily pulled Bitcoin down, only to see a rapid recovery following resolution.

As of July 3, 2025, Bitcoin (BTC) is priced at $109,362.67, signifying a market cap of $2.17 trillion with 64.34% market dominance. A 24-hour trading volume of $56.65 billion reflects daily volatility, as Bitcoin gained 2.57% in the last day and 31.58% over 90 days. The global cryptocurrency space remains vigilant amid anticipated Federal Reserve decisions, as captured by CoinMarketCap data.

bitcoin-daily-chart-1920

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 05:51 UTC on July 3, 2025. Source: CoinMarketCap

Coincu research insights suggest monetary policy shifts may underscore prolongation of volatile periods. Investors anticipate potential correlation between Treasury actions and digital asset valuations, driving crucial observations in both traditional and crypto financial sectors.

Source: https://coincu.com/346568-arthur-hayes-bitcoin-us-liquidity/