Arthur Hayes made a call on X today. Dollar liquidity is replenishing, but Bitcoin will remain weak until the Fed or banks start expanding their balance sheets.
He laid out the sequence plainly: liquidity comes back first; prices depend on the next step, balance-sheet expansion. The liquidity framework is his usual line of thinking—nothing has changed this time.
The market action is backing up his point. $BTC is currently around $76,900, down 2.26% over the past 24 hours.
He really gave just one condition. The Fed’s balance sheet has been shrinking since 2022, while bank reserves and reverse repo balances are reinterpreted by the market every week. He gave no timeline for when balance-sheet expansion might happen.
#BTC #Liquidity
He laid out the sequence plainly: liquidity comes back first; prices depend on the next step, balance-sheet expansion. The liquidity framework is his usual line of thinking—nothing has changed this time.
The market action is backing up his point. $BTC is currently around $76,900, down 2.26% over the past 24 hours.
He really gave just one condition. The Fed’s balance sheet has been shrinking since 2022, while bank reserves and reverse repo balances are reinterpreted by the market every week. He gave no timeline for when balance-sheet expansion might happen.
#BTC #Liquidity
