Arthur Hayes says Bitcoin’s recent pullback is less about crypto-specific weakness and more about a sharp contraction in dollar liquidity rippling through global markets. Key Takeaways: Arthur Hayes links Bitcoin’s pullback to a $300B contraction in U.S. dollar liquidity rather than crypto-specific factors. The USDLIQ index has fallen nearly 7% in six months, reflecting tighter financial conditions. Hayes says government cash buildup and reduced liquidity are pressuring Bitcoin and other risk assets. ...

Bitcoin (CRYPTO: BTC) underperformed in 2025 while gold soared 120%, yet BitMex co-founder Arthur Hayes says dollar liquidity is about to return in 2026.The Real Reason Bitcoin LaggedThe Professional Capital Management CEO used his latest essay to point out why Bitcoin traded flat while gold exploded and tech stocks kept climbing.Bitcoin follows dollar liquidity. When the money supply shrinks, Bitcoin drops. When it expands, Bitcoin surges.Gold surged because central banks dumped U.S. treasuries after Russi ...

BitMEX co-founder Arthur Hayes claimed that Bitcoin’s weak performance in 2025 was a direct result of tightening dollar liquidity. Notably, Bitcoin fell 14.4% last year as liquidity declined. Gold soared 44.4% in the same period. US tech stocks also outperformed, supported by state-backed capital flows rather than free-market demand. In a recent blog post, Hayes explained that Bitcoin only responds to one variable i.e., the rate of fiat debasement. Generally, when liquidity contracts, BTC sees downside ...

Bitcoin Billionaire Arthur Hayes Blames Crypto Plunge on 'Contraction in Dollar Liquidity'► https://t.co/NSvvsmW0yM https://t.co/NSvvsmW0yM ...

Group 1: Eurozone Banking Challenges - Eurozone banks are facing significant challenges due to a sell-off in US Treasury securities and a weakening dollar, complicating their reliance on USD-denominated liquid assets [3][8] - The interconnectedness of global financial systems is highlighted, with trade disputes potentially impacting monetary stability [3] Group 2: Geopolitical Developments in Ukraine - A notable shift in the Ukraine conflict has occurred, with President Zelenskiy and European leaders supporting President Trump's call for an immediate ceasefire and using the current line of contact as a basis for negotiations [4][8] - Discussions include potential territorial exchanges and the need for strong security guarantees for Ukraine [4] Group 3: China's Oil Import Quota - China has set its crude oil import quota for non-state trade for 2026 at 257 million metric tons, unchanged from 2025, indicating a consistent energy import strategy [5][8] - The country aims to expand its strategic petroleum reserves to approximately 1 billion barrels by 2026, which is crucial for global oil balances amid projected supply gluts [5] Group 4: US Government Shutdown - The US government shutdown has entered its fourth week, with discussions among Republicans about a longer stopgap bill to fund the government as the initial deadline approaches [6][8] - The ongoing fiscal uncertainty has led to widespread frustration among the public, as indicated by a recent poll [6] Group 5: CBOE Trading Hours Extension - CBOE is proposing to extend options trading hours to include new morning and afternoon sessions, aiming to enhance global market access and align with underlying equities [9] - This initiative responds to a 68% surge in options volume over the past two years, indicating growing demand for extended trading hours [9] Group 6: Energy Sector Developments - Phillips 66 and Kinder Morgan have initiated an open season for a proposed fuel pipeline system from Texas to Arizona and California to address West Coast supply concerns due to refinery closures [10] - The Supreme Court is set to hear arguments regarding President Trump's tariffs, which have been claimed to amount to an illegal $3 trillion tax [10] - France's retail sales experienced a year-on-year decline of -1.2% in September, following a previous drop of -1.0% [10]