Mr. Hayes Points to U.S. Dollar Liquidity Drop as a Factor in Bitcoin's Decline

Arthur Hayes, founder of the cryptocurrency exchange BitMEX, pointed out on the 30th that U.S. dollar liquidity has decreased by approximately $300 billion over the past few weeks.

The primary factor is the $200 billion increase in the Treasury General Account (TGA), suggesting that the government might be boosting its cash reserves in preparation for a government shutdown.

Hayes stated that it is not surprising to see Bitcoin (BTC) decline as U.S. dollar liquidity contracts. Bitcoin's price fell to $83,383 on January 29, marking its lowest point in over two months.

Furthermore, Mr. Hayes discussed in an essay published in mid-January titled 'Fro...