Hayes Blames Bitcoin Slump on Shrinking Dollar Supply

Arthur Hayes Blames Bitcoin Slump on Shrinking Dollar Supply

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 19, 2025

Key Takeaways

Arthur Hayes links Bitcoin's price drop to reduced dollar availability, not investor exits or government policy shifts;
He sees Bitcoin as a signal for global liquidity trends, which reflects expectations of future fiat supply;
While stocks remain strong, Bitcoin's fall below $90,000 suggests underlying financial stress, according to Hayes.

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Arthur Hayes, former BitMEX $112.92K CEO, recently shared his thoughts on Bitcoin’s BTC $91,322.30 latest price decline.

He noted that the drop is not because investors are pulling out or due to changes in government support, but because the availability of US dollars in the financial system is shrinking.

In a blog post, Hayes described Bitcoin as an early signal of changes in the supply of traditional currency. He said, "Bitcoin is the free-market weathervane of global fiat liquidity".

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He explained that the cryptocurrency tends to reflect what people expect the future money supply to look like.

On November 18, Bitcoin fell below $90,000. At the same time, stock indexes such as the S&P 500 and the Nasdaq 100 remain near record highs. For Hayes, this contrast points to financial trouble building in the background.

Hayes noted that Bitcoin had been rising earlier this year, even while dollar liquidity was tightening. He said that this was likely due to strong ETF inflows and positive sentiment from the Trump administration.

He also pointed out that many large financial firms, such as Goldman Sachs and Jane Street, hold shares in BlackRock’s Bitcoin ETF.

However, these firms are using the ETF as part of a strategy called a "basis trade". They buy the ETF and, at the same time, short Bitcoin futures.

Recently, Nick Szabo shared his thoughts on the Bitcoin network's vulnerability to legal interference. What did he say? Read the full story.