BitMEX founder Arthur Hayes said that Bitcoin’s recent price decline was not due to fundamental factors, but rather due to shrinking liquidity in the US dollar.
Arthur Hayes: “Bitcoin’s decline is due to a liquidity crunch, not the underlying problem.”
According to Hayes, the market decline is not due to Bitcoin’s structural weaknesses as investors believe, but rather to weakening ETF arbitrage flows and DAT (dual asset token) inflows. The prominent investor pointed out that BTC could fall in the $80,000 to $85,000 range in the short term.
Hayes emphasized that the current situation is a result of macroeconomic conditions, and said a potential stock price correction, especially in the US market, would be an important turning point. He argued that this expected correction in the US stock market could lead to the reintroduction of liquidity from the Fed, which could have a positive impact on the crypto market.
Arthur Hayes offered a slightly more optimistic outlook for the end of the year, saying Bitcoin could see a strong rally towards the $200,000-$250,000 level once liquidity returns to the market.
Hayes said that while short-term volatility is normal in the crypto market, Bitcoin will quickly regain momentum once the macro liquidity situation improves, stressing that investors should focus on the big picture instead of panicking.
According to experts, Hayes’ assessment shows the increasing influence of macro factors on the crypto market.
*This is not investment advice.
