Arthur Hayes Warns of Bitcoin Decline Amidst Liquidity Contraction

Arthur Hayes, co-founder of BitMEX, recently predicted a potential Bitcoin downturn due to reduced ETF inflows and a contraction of dollar liquidity, impacting cryptocurrency markets globally.

This indicates growing market caution and challenges in sustaining institutional interest, potentially causing further volatility in major cryptocurrencies like Bitcoin and Ethereum.

Arthur Hayes on Bitcoin’s Liquidity Challenges

Arthur Hayes expressed concerns about Bitcoin’s performance linked to the contraction of dollar liquidity and ETF inflows. Hayes, after selling over $7.4 million in crypto in mid-November 2025, argues that Bitcoin may lack the support needed to sustain institutional buying, given current negative liquidity conditions. According to Hayes, “ETF inflows and corporate treasury purchases, which previously supported Bitcoin, have weakened. This sentiment is insufficient to sustain institutional investors’ purchases of ETFs.” More insights on Hayes’ perspectives can be tracked through his activities on Twitter.

Market dynamics show a change, with ETFs and Digital Asset Trusts trading below mNAV, reducing institutional interest in these products. Hayes believes this signals an end to the liquidity influx that previously supported Bitcoin, prompting a market reassessment.

The crypto community reacts with mixed opinions, ranging from cautious optimism to concerns of a market correction. Arthur Hayes’ moves and predictions have drawn significant attention with many viewing his actions as a response to evolving market challenges.

Analyzing Bitcoin’s Price Movements Amid Liquidity Contraction

Did you know? Bitcoin’s price fluctuations have historically coincided with macroeconomic shifts, similar to 2022’s liquidity contraction which led to increased volatility and testing of historical price supports.

As of November 18, 2025, Bitcoin (BTC) is priced at $90,384.54, with a market cap of $1.80 trillion. In recent movements, its price has decreased by 5.18% over the past 24 hours, with a seven-day fall of 15.03%. The trading volume sits at $103.00 billion, as reported by CoinMarketCap.

Coincu analysts highlight historical trends, noting that periods of reduced dollar liquidity often precede crypto market corrections. Experts suggest that without renewed liquidity expansion, volatility could continue, echoing past cycles where institutional pressures caused temporary downturns.