Arthur Hayes stated that the recent price drop in Bitcoin coincided with a tightening of US dollar liquidity. Continue Reading: BitMEX Founder Arthur Hayes AttributesArthur Hayes stated that the recent price drop in Bitcoin coincided with a tightening of US dollar liquidity. Continue Reading: BitMEX Founder Arthur Hayes Attributes

BitMEX Founder Arthur Hayes Attributes Bitcoin’s Recent Drop to This Reason! Here Are the Details

Arthur Hayes, the founder of BitMEX and a closely watched figure in the cryptocurrency markets, stated that the recent price drop in Bitcoin coincided with a tightening of US dollar liquidity.

Hayes stated in a post on the social media platform X that dollar liquidity has decreased by approximately $300 billion in the past few weeks.

According to Arthur Hayes, the primary reason for this contraction was the increase in the balance of the U.S. Treasury Department’s General Account. Hayes stated that there was an increase of approximately $200 billion in the General Account, which directly reduced the amount of cash in circulation.

Hayes emphasized that the US government may be increasing its cash reserves to safeguard spending against a potential shutdown risk, adding that this process is tightening liquidity in financial markets.

Arguing that the pullback in Bitcoin is not surprising in this macroeconomic environment, Hayes reminded that the cryptocurrency shows a strong correlation with global dollar liquidity. He stated that when dollar liquidity expands, demand for risky assets increases, while investors behave more cautiously during periods of contraction, and that Bitcoin is also affected by this cycle.

Analysts say Hayes’ assessment once again reveals that Bitcoin is shaped not only by technical factors but also by macroeconomic developments. They emphasize that changes in US fiscal policies, government spending, and liquidity conditions could be decisive in determining the direction of cryptocurrency markets in the coming period.

*This is not investment advice.

Continue Reading: BitMEX Founder Arthur Hayes Attributes Bitcoin’s Recent Drop to This Reason! Here Are the Details

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