Arthur Hayes Says Bitcoin’s Slump is Due to Liquidity Challenges
Arthur Hayes, co-founder and former CEO of BitMEX, has offered his perspective on why Bitcoin has recently experienced a significant decline. According to Hayes, the 25% drop in Bitcoin’s price since early October is not caused by changing political messages or global events but by a contraction in U.S. dollar liquidity. In simple terms, there is less cash flowing through the financial system, which affects how investors buy and sell assets like Bitcoin. Hayes describes Bitcoin as a “free-market weathervane of global fiat liquidity,” meaning its price often reflects expectations about future money supply. Hayes uses an interesting analogy to…