Arthur Hayes Signals Crypto Market Revival Post Liquidity Bottom
Arthur Hayes, the co-founder and former CEO of BitMEX, announced on social media platform X (formerly Twitter) on December 31, 2025, that the cryptocurrency market has likely reached its lowest point in liquidity back in November 2025. According to Hayes, the market is now positioned for a gradual recovery, marking the start of a long-term upward trend for digital assets.
He wrote, “$liq likely bottomed in Nov and is inching higher. It’s time for crypto to pump up the jam.”
Alongside improving liquidity conditions, Hayes pointed out early signs of the Federal Reserve easing monetary policy by pausing its quantitative tightening and showing preliminary support for Treasury markets. This shift, coupled with rising U.S. GDP and stable inflation data, could attract traditional cash allocations into high-risk assets like cryptocurrencies, creating a favorable environment for growth.
Bitcoin’s Stability Fuels Confidence
Bitcoin’s ability to maintain its $80,000 support level during the liquidity squeeze has further affirmed Hayes’ prediction of a market turnaround. Highlighting his earlier statements about the short-term bottom forming around this price level, he emphasized that increasing U.S. Treasury debt issuance and improving global bank lending reserves create ideal conditions for a crypto bull market.
Hayes believes Bitcoin will likely be the first token to surpass its previous all-time highs before altcoins, particularly decentralized finance (DeFi) tokens, take the spotlight. This prediction is influenced by the power of DeFi platforms to offer high-yield opportunities in a progressively liquid market.
Arthur Hayes’ Strategic Shift into DeFi
In the past two weeks, Hayes has reportedly sold 1,871 ETH worth $5.53 million, redirecting the funds toward building a diversified DeFi portfolio. Based on an on-chain report by Lookonchain, these purchases include:
- 961,113 PENDLE tokens (~$1.75 million)
- 2.3 million LDO tokens (~$1.29 million)
- 6.05 million ENA tokens (~$1.24 million)
- 491,401 ETHFI tokens (~$343,000)
Each of these tokens boasts unique functionalities designed to capitalize on liquidity influx. For example, PENDLE enables trading on future yield markets, while LDO frees up staked ETH liquidity. ENA integrates data-driven predictions, and ETHFI enhances staking rewards, making them high-upside choices for the next bull phase.
DeFi Tokens Positioned for Explosive Gains
Decentralized finance has historically outperformed in periods of high liquidity, attracting both institutional and retail investors to yield-generating strategies over static holdings. Hayes’ approach of reallocating and accumulating strong DeFi projects during market dips could set these assets up for potential 5-10x returns.
DeFi platforms that simplify staking, trading, and automated yield farming—like Pendle—are expected to thrive. With Hayes’ focus on these projects, investors seeking to diversify during this recovery phase might consider exploring similar decentralized ecosystems that offer long-term growth potential.
Macroeconomic Factors Supporting Growth
Hayes’ bullish outlook aligns with U.S. economic data released on December 23, 2025, which reported a 4.3% GDP growth rate and controlled inflation at 2.6%. These conditions lower the likelihood of harsh monetary policies and instead support the Fed in expanding its balance sheet, effectively injecting liquidity into the system.
According to Hayes, crucial indicators to monitor include the Federal Reserve’s H.4.1 reports, rising DEX trading activity, and institutional inflows through Bitcoin ETFs. The intersection of these factors could sustain accelerated growth, setting the stage for Bitcoin to break psychological barriers and DeFi tokens to surpass expectations.
Final Thoughts: A Critical Time for Crypto Investors
Arthur Hayes’ accurately timed call of Bitcoin’s $80,000 bottom reinforces his reputation as a sharp market observer. By advocating for gradual accumulation of key tokens like PENDLE, LDO, ENA, and ETHFI, he offers a disciplined strategy that avoids speculative risk while seizing opportunities in a liquidity-driven rally.
As global markets embrace extended monetary easing, now could be a strategic time for investors to expand their cryptocurrency portfolios. Whether you’re aiming to capitalize on DeFi trends or looking to buy Bitcoin before the next surge, staying informed and methodical will be key to navigating this bullish cycle.
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