Arthur Hayes New Article: Trump Expected to Inject Liquidity to Stimulate the Economy Ahead of Midterm Elections, Bitcoin to Strongly Rebound as Dollar Liquidity Recovers

BlockBeats News, January 15, Arthur Hayes stated in his latest article "Frowny Cloud":

"Although the gains are not as strong as gold, bitcoin's performance in 2025 is actually completely in line with expectations—it did what it was supposed to do.

If bitcoin performs poorly in 2025, it is entirely a liquidity story; it declines along with US dollar liquidity. The reason gold and the Nasdaq can rise against the trend is because they have stronger non-liquidity-driven factors behind them (sovereign de-dollarization + AI quasi-nationalization). But if US dollar liquidity expands significantly as expected in 2026 (the Fed restarts money printing + commercial banks strategically increase lending + more leverage in real estate), then when it's time for bitcoin to rebound, it will be very strong.

His current judgment is: Trump will aggressively push credit to 'make the economy red-hot.' A super-heated economy will help the Republican Party in this November's re-election, and US dollar credit is expected to expand in the following ways:

· The Fed's balance sheet expands again (money printing)

· Commercial banks provide ample liquidity to 'strategic industries'

· Mortgage rates decline due to money printing"