BitMEX’s co-founder Arthur Hayes believes that Bitcoin could reach new heights this year despite its performance against stocks and gold last year. He cited a potential expansion in monetary conditions.
“If gold and the Nasdaq have the juice, how is Bitcoin going to get its groove back? Dollar liquidity must expand for that to happen,” Hayes said In a Wednesday post. “Obviously, I believe it will in 2026,” Hayes said.
Hayes identified several catalysts for a “drastic increase” In 2026, dollar liquidity will increase due to the US Federal Reserve expanding its balance sheet. “money printing,” Commercial banks are more willing to lend money to US-backed strategic industries and mortgage rates continue to fall as the liquidity loosens.
US will continue to “flex its military muscle,” Hayes
“The US will continue to flex its military muscle, and to do so requires the production of weapons of mass destruction financed by the commercial banking system,” Hayes said.
Bitcoin is generally a beneficiary of monetary expansion. This is because investors tend to gravitate towards riskier assets such as cryptocurrencies, in anticipation that the US Dollar will lose its value through inflation.
Hayes claimed that the Nasdaq was not affected by the decline in dollar liquidity and Bitcoins of 2025 because AI had already been introduced. “nationalized by both China and America.”
“Through executive orders and government investment, Trump is blunting the free market signals so that capital, irrespective of the real return on equity, floods into everything related to AI,” He said.
Technology stocks are the best-performing sectors for 2025
Technology stocks were the top-performing sector in the S&P 500 in 2025, delivering a total return of 24.6%, 6.6% higher than the S&P 500 Index’s overall return of 18%.
BitcoinBTCThe price of gold increased by 44.40% during the year 2025. according to Curvo data.
“The liquidity didn’t support our crypto portfolios. But let’s not draw the wrong conclusions from Bitcoin’s 2025 underperformance. It was as it always is, a liquidity story,” Hayes said.
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Hayes stated that Bitcoin was a currency. “monetary technology” It is only worth what it costs to debase fiat.
“This alone guarantees that Bitcoin’s value is greater than zero. But for Bitcoin to be worth close to 100,000 United States of American Dollars requires continuous fiat monetary debasement,” Hayes is added.
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Source: cointelegraph.com
