Arthur Hayes Predicts Bitcoin to Regain Momentum
Bitcoin enthusiast Arthur Hayes is optimistic about the digital currency’s future, suggesting that it could reach new all-time highs in 2026. Despite facing challenges and lagging behind gold and tech stocks in 2025, Hayes believes that bitcoin has the potential for resurgence.
According to Hayes, the key to bitcoin’s resurgence lies in a significant expansion of dollar liquidity. He emphasized that for bitcoin to regain its momentum, there needs to be a shift in monetary conditions that favor its growth. Hayes highlighted the importance of liquidity as the core catalyst for driving bitcoin’s value and performance in the market.
In his analysis, Hayes outlined several factors that could contribute to a substantial increase in dollar liquidity in 2026. These factors include the expansion of the Federal Reserve balance sheet through monetary policies such as money printing, the decrease in mortgage rates resulting from increased liquidity, and the willingness of commercial banks to lend to strategic industries backed by the US government.
Hayes also drew a connection between liquidity and US defense priorities, stating that military expenditures play a crucial role in stimulating bank financing. He emphasized that the production of weapons of mass destruction, financed through the commercial banking system, is essential for the US to maintain its military prowess.
Reflecting on bitcoin’s performance in 2025, Hayes observed that a decline in dollar liquidity had a negative impact on the cryptocurrency’s value. While bitcoin experienced a decrease in value, other assets such as gold and technology stocks saw significant gains. Hayes attributed this disparity to the liquidity-driven nature of bitcoin’s market performance.
Despite facing challenges in 2025, Hayes remains hopeful about bitcoin’s future growth potential. He characterized bitcoin as a form of monetary technology that offers value in comparison to fiat currencies that are susceptible to debasement. Hayes pointed to long-term trends in purchasing power, as illustrated by Bitbo’s dollar devaluation chart, to underscore the intrinsic value of bitcoin.
In closing, Hayes’ insights shed light on the importance of liquidity in shaping bitcoin’s market performance and its potential for future growth. While the cryptocurrency faced challenges in 2025, Hayes remains optimistic about its prospects in the coming years, believing that favorable changes in monetary conditions could pave the way for bitcoin to reclaim its position as a leading digital asset.
