Arthur Hayes: The influx of ETF and DAT funds has come to an end. If liquidity cannot cover it, Bitcoin must drop

BitMEX co-founder Arthur Hayes recently stated that despite the contraction of dollar liquidity since April 9, the inflow of ETFs and the buying of DAT have allowed Bitcoin to rise, but this situation has now ended.

This sentiment is insufficient to sustain institutional investors' purchases of ETFs, and most DATs are trading below mNAV, leading investors to begin avoiding these Bitcoin derivative securities.

If this liquidity cannot mask negative liquidity, Bitcoin must decline to reflect current short-term concerns that dollar liquidity will contract or will not grow as quickly as politicians have promised.