TLDR
- Bitcoin price has held steady above $80,000 after falling from recent highs.
- Arthur Hayes believes the Federal Reserve’s policy shift will boost liquidity.
- Hayes stated that Bitcoin price should stay above the $80,000 support level.
- He expects a rebound once the Fed’s quantitative tightening ends next month.
- U.S. bank lending increased in November which may support crypto markets.
The Bitcoin price maintained its floor above $80,000 as former BitMEX CEO Arthur Hayes predicted a liquidity-driven rebound. Hayes stated that a shift in U.S. liquidity could support crypto assets as quantitative tightening nears its end. He emphasized that the Federal Reserve’s upcoming balance sheet change may reinforce support for Bitcoin price levels.
Bitcoin Price Holds as Hayes Stays Confident
Bitcoin price fell sharply from its all-time high but bounced near $80,500, retaining key support. Arthur Hayes believes this level should hold, citing recent monetary trends in the U.S. “I think $80,000 holds,” Hayes posted on X while outlining liquidity shifts.
He pointed to early signs of easing financial conditions, as U.S. bank lending rose and the Fed’s QT appears to be nearing completion. Hayes suggested this environment typically favors risk assets, including Bitcoin and altcoins.
Bitcoin price could briefly dip again, Hayes noted, but he expects it to stay above $80,000 through current volatility. He wrote,
“We chop below $90k, maybe one more stab down into low $80k’s but I think $80k holds.”
Federal Reserve Actions Influence Crypto Outlook
Hayes explained that the Fed is set to pause balance sheet reductions by next month. This expected shift signals a potential end to the current quantitative tightening cycle.
He described current monetary developments as “minor improvements in $ liq,” implying increased liquidity may fuel a Bitcoin price rebound. U.S. bank lending also increased in November, which Hayes said contributes to favorable conditions for crypto.
The BitMEX co-founder has consistently linked monetary easing with bullish Bitcoin price momentum. In earlier posts, he argued that true recovery depends on returning to a quantitative easing environment.
Market Bets on Fed Rate Changes Grow
Expectations around U.S. interest rates have shifted quickly in recent days, following limited economic data. The CME FedWatch Tool showed a 79% probability of a 0.25% rate cut at the next Fed meeting.
One week earlier, that probability stood at just 42%, reflecting volatility in policy expectations. Economist Mohamed El-Erian described the rate swings as “stunning,” citing instability at the central bank.
He posted on X that this unpredictability contrasts with the Fed’s goal of consistent financial policy. He blamed inconsistent data and unclear leadership as contributing factors.
El-Erian noted, “This kind of wild volatility is the opposite of the predictability and stability the Fed usually strives for.”
Bitcoin Traders Watch Liquidity Closely
Arthur Hayes remains focused on broader liquidity trends and their influence on Bitcoin price stability. He continues to argue that a rebound depends on conditions improving for both crypto and tech stocks.
He reiterated that stock market weakness may be necessary before the Fed resumes easing. Hayes said, “We are playing for more money printing, and for that we need AI tech stocks to crater.”
As Bitcoin price hovers just below $87,000, traders monitor Fed policy cues for confirmation. Bitcoin price strength could return as soon as liquidity trends turn more favorable.
Bitcoin traded steadily on Monday, with low volatility, and held above key technical levels. According to Hayes, the next price move depends on the timing of liquidity changes.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
