Arthur Hayes: Trump's liquidity push will fuel a new Bitcoin rally this year

BitMEX co-founder Arthur Hayes predicted in a blog post that Bitcoin will see a renewed rally this year, attributing the potential upswing to increased U.S. dollar liquidity from the Trump administration's aggressive credit expansion policies. Hayes argued that Bitcoin's failure to rally last year was due to a contraction in dollar liquidity. He explained that gold, in contrast, performed strongly because central banks sold U.S. Treasurys to buy the precious metal following the U.S. decision to freeze Russian assets. Meanwhile, the Nasdaq rose despite reduced liquidity, buoyed by the Trump administration's designation of artificial intelligence as a national strategic industry. Hayes believes the Trump administration will seek to aggressively stimulate the economy ahead of the re-election, noting that the Federal Reserve's balance sheet has already begun to expand again. He stated that this injection of liquidity could put BTC back on an upward trajectory. He added that he has personally increased his holdings in Strategy (MSTR) and Metaplanet stock, which he expects to yield higher returns than spot BTC. Hayes also views the recent developer-related issues at Zcash (ZEC) as a buy-the-dip opportunity and is increasing his position in the asset.