Arthur Hayes Says Bitcoin Faces Weakness Until Fed or Banks Expand Balance Sheets
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Arthur Hayes, co-founder of BitMEX, said Bitcoin faces continued weakness until the Federal Reserve or commercial banks expand their balance sheets, even as a dollar liquidity gauge he tracks has been rising. Hayes argued that rising liquidity alone is not enough to fuel a sustained Bitcoin rally, and that balance sheet expansion by the Fed or the banking system is the key driver needed to reverse the current downtrend. The comments come as Bitcoin trades well below its recent highs, with traders weighing the impact of liquidity conditions on crypto markets. Hayes did not specify a timeline for when balance sheet expansion might occur, leaving the timing of a potential Bitcoin recovery uncertain. Market watchers will be monitoring upcoming Fed policy decisions, bank reserve levels, and Hayes' liquidity gauge for signals on when conditions could turn supportive for Bitcoin.
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Arthur Hayes, Bitcoin (BTC), Federal Reserve
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