Bitcoin has seen recent price fluctuations, prompting concerns from investors. BitMEX founder Arthur Hayes breaks down why this volatility is temporary and a precursor to a massive bull market. He points to declining U.S. dollar liquidity as the key driver of short-term downward pressure on Bitcoin. This reduction in dollar liquidity affects risk assets like Bitcoin due to its impact on broader market dynamics, creating upward pressure on Bitcoin’s price. 2023 saw similar conditions, where Treasury Secretary Janet Yellen injected $2.5 trillion into markets through increased short-term government bond issuance, ultimately stabilizing the market. Hayes notes a similar scenario is unfolding with the potential for increased government intervention to stabilize markets and inject liquidity into the market. He explains that this temporary correction will pave the way for an impressive surge in Bitcoin’s price later this year. Hayes suggests we should watch for these indicators as they can signal when the correction may end: a decline of 10-20% on the S&P and Nasdaq indices, along with a rise in the 10-year U.S. Treasury yield towards 5%. He anticipates that once this happens, the Trump administration and Treasury Secretary Scott Bessent will intervene by addressing inflation concerns while injecting liquidity into the market for stability. The long-term outlook remains bullish. Hayes predicts Bitcoin could reach between $200,000 and $250,000 by year-end as liquidity returns to the market.