Crypto Market Drop Linked to US Liquidity Concerns: Arthur Hayes Highlights Correlation

Arthur Hayes, BitMEX co-founder, has revealed a link between Bitcoin’s recent price decline and the decrease in US liquidity. His analysis shows a correlation of -5% for Bitcoin (BTC) with a -8% drop in the US liquidity index since July, when the US debt ceiling was raised. Hayes suggests that macroeconomic factors tied to the US government shutdown are influencing Bitcoin market trends, specifically highlighting the impact of rising liquidity levels on cryptocurrency prices. He predicts a significant rebound for the crypto market once the current political standoff is resolved.