The Bitmex co-founder argued that this dynamic began to change late in the year as balance sheet runoff ended and new reserve management purchases were introduced. Framing that shift as a potential inflection point, he wrote:
He also pointed to early signs of renewed commercial bank lending, particularly toward government-supported strategic industries, as evidence that dollar creation was beginning to reaccelerate through multiple channels.
FAQ ⏰ Why does Arthur Hayes believe bitcoin could recover? He argues that rising U.S. dollar liquidity from Federal Reserve balance sheet growth historically supports bitcoin prices. What role does the Federal Reserve balance sheet play in bitcoin performance? Hayes says balance sheet expansion increases dollar availability, which bitcoin tends to track closely. How do bank loans affect dollar liquidity, according to Hayes? Renewed commercial bank lending creates new deposits, expanding the money supply. Why does Hayes downplay comparisons between bitcoin and gold? He believes bitcoin’s price is driven more by liquidity conditions than by relative asset performance.
