Arthur Hayes Predicts BTC Price to Surge in 2026 Amid Dollar Liquidity Expansion
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BitMEX co-founder Arthur Hayes has shared a bold prediction for the BTC price, asserting that it may rise in 2026, driven by a rebound in dollar liquidity. In his latest essay, Frowny Cloud, Hayes argues that this year could mark a turning point for Bitcoin despite its struggles in 2025. Dollar Expansion to Drive Bitcoin Gains, Says Arthur Hayes In an essay titled “Frowny Cloud,” Arthur Hayes predicted the BTC price surge in 2026, potentially hitting a new all-time high. “Obviously, I believe it will in 2026,” stated Hayes. He added, “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.” Notably, Arthur Hayes based his prediction on the expansion in dollar liquidity driven by a series of developments. These include the Federal Reserve’s balance sheet expansion through “money printing,” falling mortgage rates, increased commercial bank lending to U.S. government-backed strategic industries, and broader fiscal measures supporting economic growth. He added, “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.” His latest prediction of Bitcoin hitting an ATH further reiterates his previous statement. As CoinGape reported, Arthur Hayes predicted BTC to hit $500k by the end of 2026. Traditionally, the expansion of the money supply has a positive impact on Bitcoin. This is due to the fact that investors normally look for riskier assets in inflation period as the dollar is expected to lose its value. With this backdrop, Arthur Hayes states that the BTC price drop in 2025 was due to the reduction of dollar liquidity. Bitcoin’s 2025 Struggles Reveal a Liquidity Story Bitcoin, currently priced at $96,241, had slipped to below $85k in late 2025…
Filed under: News - @ January 15, 2026 7:24 am