Tag Archives: impacting cryptocurrency markets

Arthur Hayes Warns of Bitcoin Decline Amidst Liquidity Contraction

Posted on by
Reply

Arthur Hayes, co-founder of BitMEX, recently predicted a potential Bitcoin downturn due to reduced ETF inflows and a contraction of dollar liquidity, impacting cryptocurrency markets globally. This indicates growing market caution and challenges in sustaining institutional interest, potentially causing further volatility in major cryptocurrencies like Bitcoin and Ethereum. Arthur Hayes on Bitcoin’s Liquidity Challenges Arthur Hayes expressed concerns about Bitcoin’s performance linked to the contraction of dollar liquidity and ETF inflows. Hayes, after selling over $7. 4 million in crypto in mid-November 2025, argues that Bitcoin may lack the support needed to sustain institutional buying, given current negative liquidity conditions. According to Hayes, “ETF inflows and corporate treasury purchases, which previously supported Bitcoin, have weakened. This sentiment is insufficient to sustain institutional investors’ purchases of ETFs.” More insights on Hayes’ perspectives can be tracked through his activities on Twitter. Market dynamics show a change, with ETFs and Digital Asset Trusts trading below mNAV, reducing institutional interest in these products. Hayes believes this signals an end to the liquidity influx that previously supported Bitcoin, prompting a market reassessment. The crypto community reacts with mixed opinions, ranging from cautious optimism to concerns of a market correction. Arthur Hayes’ moves and predictions have drawn significant attention with many viewing his actions as a response to evolving market challenges. Analyzing Bitcoin’s Price Movements Amid Liquidity Contraction Did you know? Bitcoin’s price fluctuations have historically coincided with macroeconomic shifts, similar to 2022’s liquidity contraction which led to increased volatility and testing of historical price supports. As of November 18, 2025, Bitcoin (BTC) is priced at $90,384. 54, with a market cap of $1. 80 trillion. In recent movements, its price has decreased by 5. 18% over the past 24 hours, with a seven-day fall of 15. 03%. The trading volume sits at $103. 00 billion, as reported by CoinMarketCap.
https://bitcoinethereumnews.com/bitcoin/arthur-hayes-warns-of-bitcoin-decline-amidst-liquidity-contraction/

Federal Reserve Prepares Response Amid Rising Market Pressure

Posted on by
Reply

**Wall Street Banks Alert Federal Reserve to Renewed Money Market Pressures**

Wall Street banks have sounded the alarm to the Federal Reserve regarding renewed pressures in the U.S. money market. This warning has prompted the possibility of swift Fed intervention to prevent rising short-term interest rates. The situation not only threatens broader financial stability but also has potential implications for cryptocurrency markets, which have recently experienced notable volatility and asset price declines.

—

### Fed Intervention Likely as Wall Street Warns of Market Stress

Warnings from several Wall Street banks suggest that stress in the U.S. money market could be imminent. This may prompt the Federal Reserve to step in to manage and stabilize short-term rates. Market experts expressed concerns during November over possible repeat fluctuations in rates, reminiscent of historical repo market crises.

Immediate effects include growing uncertainty within money markets and fears over sudden hikes in overnight repo rates. Should such incidents recur, both the traditional financial system and the cryptocurrency sector could face disruption. The Federal Reserve’s anticipated involvement highlights ongoing fragility in U.S. monetary flows.

—

Expert insights from institutions like Citibank and Curvature Securities indicate expectations for recurring financial pressures, particularly around critical financial closing periods. As Deirdre Dunn, Head of Rates at Citibank, noted:

> “I don’t think this is just a one-off anomaly that lasts a few days. The structural pressures in the repo market are real, and we should expect volatility to return, especially around month-end and year-end.”

These observations align with indications that the Federal Reserve is prepared to act decisively if necessary, possibly relying on its liquidity facilities to alleviate market stress.

—

### Crypto Market Volatility Mirrors Financial Uncertainty

Did you know? The Federal Reserve’s first major repo intervention in September 2019 coincided with a sharp 12% drop in cryptocurrency prices like Bitcoin, as markets adjusted to overnight rate spikes.

Recently, cryptocurrency data reveals that Bitcoin (BTC), currently priced at $102,218.97, experienced a 1.18% decrease in the past 24 hours. Over the last week, Bitcoin has seen a notable decline of 6.07%, according to CoinMarketCap. Despite these fluctuations, the overall crypto market capitalization remains at approximately $2.18 trillion.

—

The recent turmoil in money markets and the Federal Reserve’s potential interventions underscore the interconnectedness of traditional financial systems and emerging digital asset markets. Investors and market participants should stay vigilant as these developments continue to unfold.
https://bitcoinethereumnews.com/tech/federal-reserve-prepares-response-amid-rising-market-pressure/