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ArthurHayes: Liquidity, Not Regulatory Support, Is the Core Driver of Bitcoin's Rise

2026-05-07 03:24

Odaily Planet Daily News: Arthur Hayes stated at the Consensus 2026 conference that the crypto industry is not reliant on regulation for development. The core factors affecting Bitcoin's price are only technological reliability and fiat liquidity, with the latter being the true driving force.

He pointed out that from the quantitative easing of the Obama era, the fiscal stimulus during Trump's first term, to the Biden administration releasing reverse repo liquidity by replacing long-term bonds with short-term debt, each round of monetary expansion has been highly correlated with Bitcoin's rise. Arthur Hayes believes that although the Trump administration has pushed forward multiple crypto regulatory bills, Bitcoin has still fallen by about 25% over the past approximately 18 months, indicating that positive regulatory developments do not directly drive price increases.

He also stated that the Trump family's previous experiences with debanking, asset freezes, and lawsuits may make them more appreciative of Bitcoin's value as an asset free from state control. Arthur Hayes said that if Bitcoin eventually evolves into a common financial product on bank balance sheets, it will lose its original significance.