Arthur Hayes Predicts Crypto Market Liquidity Recovery

BitMEX co-founder Arthur Hayes announced on December 31, 2025, that cryptocurrency market liquidity likely bottomed out in November and is gradually recovering.

Hayes’ assertion, paired with his market trades, suggests potential for DeFi token gains amid increased liquidity, drawing varied reactions from the crypto community.

Arthur Hayes Signals Liquidity Surge After November Lows

Arthur Hayes expressed confidence that crypto market liquidity may have bottomed out in November. He shared on Twitter that this rise in liquidity suggests an opportune time for cryptocurrency values to increase. Hayes highlighted the potential for renewed investor optimism as market liquidity has shown signs of recovery, potentially reversing the stagnation experienced in preceding months.

Hayes’ daily presence and noteworthy trades indicate a strategic shift towards DeFi tokens, with trades involving selling 1,871 ETH, valued at approximately $5.53 million. These actions hint at an expectation that assets associated with decentralized finance could outperform traditional cryptocurrencies as liquidity improves.

Community members’ reactions remain varied. While some investors express caution due to his previous asset sales, others welcome the renewed focus on DeFi. Hayes’ comments and actions work towards bolstering enthusiasm within the broader cryptocurrency community.

Bitcoin Dominance and DeFi’s Potential Boost

Did you know? Arthur Hayes’ prediction aligns with historical liquidity movements, where market rebounds in crypto have often preceded runs in decentralized finance, fueling further market shifts.

Bitcoin’s price stands at $87,404.94, with a market capitalization of 1.75 trillion USD and a dominance of 58.99%, as per CoinMarketCap. Despite a slight decrease over 24 hours, Bitcoin remains a dominant force in the crypto realm. The current supply is near its max at 19,969,643 out of 21 million total coins, sustaining investor interest due to scarcity concerns.

The Coincu research team suggests that improved liquidity could strengthen altcoin performance, particularly in DeFi protocols. This aligns with historical patterns where liquidity increases have often preceded technological advancements and higher crypto adoption, driving innovation and investor confidence. For insights into Bitcoin surpassing price benchmarks, check Bitcoin surpasses $89,000 amid high buying pressure.