Arthur Hayes: The Bitcoin short squeeze may restart the Ethena flywheel, and ENA yields are expected to rise to 9%

Arthur Hayes reposted his interview video on the X platform, stating that the Ethena (ENA) ecosystem is currently facing a downturn, but as the market environment improves, its yield mechanism may restart. The ENA price has dropped about 99% from its historical high, with pressure from venture capital firms and a sluggish crypto market leading to a decline in yields, causing the entire mechanism to stagnate.

Arthur Hayes indicated that if Bitcoin rises and triggers a massive short squeeze, the market basis may quickly widen, and a higher basis would drive Ethena's yield from the current approximately 4% up to 8%-9%. Once yields rebound, Ethena's yield-driven mechanism may re-establish a positive cycle, revitalizing the ecosystem.