Arthur Hayes predicts that Bitcoin will directly benefit from the USD's liquidation expansion cycle in 2026, as financial conditions in the US gradually ease.
According to Hayes' latest analysis, he believes the Federal Reserve's balance sheet is likely to continue expanding, leading to increased bank credit growth, while lower mortgage rates will improve access to Capital for the economy. These factors, according to Hayes, will Chia to a large-scale increase in USD liquidation .
In this context, Hayes XEM Bitcoin as the most liquidation-sensitive asset, often reacting strongly when global money flows become more abundant. He argues that when more USD is injected into the financial system, a significant portion will seek scarce and hedging assets, with Bitcoin being a prominent choice.
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Repeating the familiar pattern of the monetary cycle.
Hayes also emphasized that past Bitcoin bull cycles have often been linked to periods of monetary easing, including the Fed's balance sheet expansion and favorable credit conditions. If a similar scenario repeats in 2026, he believes Bitcoin's upward momentum will be bolstered by macroeconomic factors, rather than solely based on short-term speculation.
Long-term macroeconomic perspective
