BitMEX founder Arthur Hayes said that the recent price declines in Bitcoin are not due to fundamental factors, but rather to the shrinkage of US dollar liquidity.
Arthur Hayes: “Bitcoin’s Decline Is Due to Liquidity Tightness, Not a Fundamental Problem”
According to Hayes, the market pullback isn’t due to a structural weakness in Bitcoin, as investors believe, but rather to weakening ETF arbitrage flows and DAT (Dual Asset Token) inflows. The renowned investor noted that BTC could fall to the $80,000-$85,000 range in the short term.
Hayes emphasized that the current situation is a result of macroeconomic conditions, and stated that a potential equity correction, particularly in US markets, would be a significant turning point. He argued that this anticipated correction in US stock markets could lead to the Fed reintroducing liquidity, which could have a positive impact on crypto markets.
Arthur Hayes painted a rather optimistic outlook for the end of the year, saying that if liquidity flows back into the market, Bitcoin could mount a strong rally towards the $200,000-$250,000 level.
Hayes stated that short-term fluctuations are normal in crypto markets, but that Bitcoin will quickly regain strength when macro liquidity conditions improve, emphasizing that investors should focus on the big picture rather than panic.
According to experts, Hayes’ assessment shows that the influence of macro factors on the crypto market is increasing.
*This is not investment advice.