Future

Arthur

Spark

Reserve

Arthur Hayes, co-founder of <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.bitmex.com/app/register/hUdJZJ">BitMEX</a>, has attributed Bitcoin’s 25% slide to sudden U.S. dollar liquidity contraction. According to Hayes, Bitcoin’s price movements are directly influenced by changes in liquidity, not political rhetoric. This shift in market liquidity has caused a dramatic price decline, which Hayes believes reflects the tightening of global monetary conditions.
<blockquote class="twitter-tweet">
 Arthur Hayes, the man who called <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-trump.aspx?TargetURL=https://www.etoro.com/markets/trump">Trump</a>’s tariff shock and the 2021 peak…
 Is now capitulating on <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-ethereum.aspx?TargetURL=https://www.etoro.com/markets/eth">ETH</a>, <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-ethena.aspx?TargetURL=https://www.etoro.com/markets/ena">ENA</a> and multiple alts — selling at a loss.
 This isn’t random.
 Here’s what it really means and the timeframe for the Bear Market <img src="https://s.w.org/images/core/emoji/16.0.1/72x72/1f447.png" alt="👇" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/16.0.1/72x72/1f9f5.png" alt="🧵" style="height: 1em; max-height: 1em;"> <a href="https://t.co/CQrGifxvSz" rel="noopener noreferrer nofollow">pic.twitter.com/CQrGifxvSz</a>
 — SHADOW <img src="https://s.w.org/images/core/emoji/16.0.1/72x72/1f47b.png" alt="👻" style="height: 1em; max-height: 1em;"> (@Shadow_CryptX) <a href="https://twitter.com/Shadow_CryptX/status/1990397943648522524?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 17, 2025</a>
</blockquote>
<h2 id="br-strong-bitcoin-s-price-decline-linked-to-sudden-liquidity-contraction-says-arthur-hayes-strong"> Bitcoin’s Price Decline Linked to Sudden Liquidity Contraction, Says Arthur Hayes</h2>
Hayes draws a parallel between Bitcoin’s recent volatility and unpredictable weather patterns in Japan. Just as traders can’t always predict weather changes, Bitcoin’s price often reflects shifts in global liquidity. Hayes suggests that Bitcoin acts as a “free-market weathervane” for liquidity, reacting sharply to shifts in money supply.
Bitcoin has fallen 25% since early October, and Hayes attributes this to a significant contraction in dollar liquidity. He notes that the USD Liquidity Index has decreased by 10% since April, leading to the market’s current correction. Despite this, <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">Bitcoin</a> had initially risen during a period of fiscal stimulus and accommodative monetary policy.
<h2 id="strong-arthur-hayes-warns-of-market-stress-masked-by-etf-inflows-strong">Arthur Hayes Warns of Market Stress Masked by ETF Inflows</h2>
Initially, Bitcoin’s price remained stable despite liquidity tightening, partly due to large inflows into Bitcoin ETFs. However, Hayes points out that many of these inflows were speculative hedge fund trades, not long-term investments. As the spreads between Bitcoin ETFs and futures narrowed, the funds began pulling out, causing a decline in Bitcoin’s price.
These movements reveal the underlying liquidity stress in the market, with nearly $1 billion leaving Bitcoin ETFs within a week. Hayes emphasizes that the liquidity contraction has masked deeper market vulnerabilities.
<h2 id="strong-liquidity-contraction-may-spark-future-bitcoin-rally-according-to-arthur-hayes-strong">Liquidity Contraction May Spark Future Bitcoin Rally, According to Arthur Hayes</h2>
Despite the current downturn, Hayes is optimistic about Bitcoin’s future. He believes a return to “stealth quantitative easing” by the Federal Reserve could trigger a new rally in <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">Bitcoin</a>. While the Fed plans to halt quantitative tightening by December 1, Hayes suggests the market will likely see liquidity improvements after the shift.
However, with ongoing political uncertainty and the U.S. government shutdown, the timing of such changes remains uncertain. Hayes concludes that once liquidity conditions improve, Bitcoin may see a resurgence in its value.
This article was originally published as <a href="https://www.cryptobreaking.com/arthur-hayes-links-bitcoins-25/?utm_source=rss&amp;utm_medium=syndication&amp;utm_campaign=article_footer" rel="noopener noreferrer nofollow">Arthur Hayes Links Bitcoin’s 25% Drop to Liquidity Crunch</a> on <a href="https://www.cryptobreaking.com/?utm_source=rss&amp;utm_medium=syndication&amp;utm_campaign=article_footer" rel="noopener noreferrer nofollow">Crypto Breaking News</a> – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Arthur Hayes Links Bitcoin’s 25% Drop to Liquidity Crunch

Table of Contents

Crypto Breaking News

Other articles published on Nov 18, 2025

Join our free newsletter for daily crypto updates!