Arthur Hayes says crypto liquidity likely bottomed in November, rally may begin
BitMEX co-founder Arthur Hayes said on Dec. 31 that crypto-market liquidity likely bottomed in November and is slowly recovering, signaling the time for cryptocurrencies to start rising. Hayes suggested improved liquidity conditions could support price appreciation. The comment was shared by PANews and framed as market information, not investment advice. Key points: Arthur Hayes (BitMEX co-founder); liquidity bottom in November; gradual liquidity recovery; potential start of a crypto rally. Primary keyword: crypto liquidity. Secondary keywords: Arthur Hayes, BitMEX, market liquidity, crypto rally.
Bullish
Hayes’s statement that liquidity likely bottomed in November and is recovering is inherently bullish because improved liquidity typically enables larger buy-side flows, tighter spreads, and higher price resilience. For traders, a liquidity trough followed by recovery often precedes trend reversals — historically, periods after liquidity normalization (post-leverage cleanses or regulatory shocks) have allowed institutional and retail buying to return, lifting crypto prices. Short-term impact: increased probability of relief rallies and reduced volatility as order books deepen; traders may favor long-biased strategies, momentum trades, and scaling into positions on pullbacks. Long-term impact: if liquidity recovery persists, it can support sustained bullish trends and attract larger capital, though fundamentals and macro factors (rate moves, regulatory news) remain decisive. Risk: a false recovery or renewed liquidity shocks could reverse gains, so traders should watch on-chain liquidity metrics, exchange order-book depth, funding rates, and macro indicators to confirm the trend.