Hayes Warns Bitcoin Will Stay Weak Without Fresh Liquidity

BitMEX co-founder Arthur Hayes expects Bitcoin to remain under pressure until the Federal Reserve and commercial banks start expanding their balance sheets again.

He argues that only an increase in dollar liquidity can create the conditions for a sustained rally in risk assets. Until that happens, he sees little chance of meaningful upside for crypto.

The latest Fed figures show liquidity is actually tightening. As of October 28, the central bank’s total assets stood at $6.746 trillion, down $8 billion from the prior week. Average bank reserves held at the Fed fell $68.8 billion over the same period to $2.894 trillion.

Hayes points to two main ways liquidity can grow: outright asset purchases by the Fed and expanded bank lending. Without movement on either front, he anticipates continued weakness in Bitcoin.

Based on information from cryptonews.net