Arthur Hayes: The withdrawal of liquidity due to the US government shutdown is one of the reasons for the current weakness in the crypto market
2025-11-04 09:16:27
On November 4, Arthur Hayes, founder of BitMEX, wrote that the US Treasury was borrowing money but not spending it, and that the Treasury General Account was about $150 billion above the $850 billion target. This extra liquidity will not be released into the market until the government reopens. This liquidity withdrawal is one of the reasons for the current weakness in the crypto market. Expect volatility in the market, especially before the US government shutdown ends. Many people will mistake this period of market weakness and dullness for a top and sell their positions, which is a mistake, because the mechanism of the dollar currency market does not lie. Not only would Bescente need to issue $2 trillion a year to fund the government, it would also have to issue trillions of dollars to roll over maturing debt, and implicit quantitative easing through the SRF would soon begin.
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