Arthur Hayes, founder of BitMEX, said Bitcoin’s recent price decline aligns with a sharp tightening in US dollar liquidity.

He noted that dollar liquidity has fallen by nearly $300 billion in recent weeks.

According to Hayes, a key reason is the rise in the US Treasury’s General Account balance.

He explained that around $200 billion was added to the account, pulling cash out of circulation.

Hayes suggested the government may be building reserves to prepare for a possible shutdown.

This move, he said, is putting pressure on overall financial market liquidity.

He added that Bitcoin typically moves in line with global dollar liquidity trends.

When liquidity shrinks, investors reduce risk exposure, which also impacts $BTC .

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BTC

76,053.19

-2.82%