BitMEX Co-Founder Arthur Hayes Says Central Bank Money Printing Could Extend Crypto Bull Cycle Into 2026

Key Points:

• Arthur Hayes expects ongoing liquidity injections from central banks to prolong the crypto bull market well into 2026.

• Hayes argues that policymakers are “trapped” in a cycle of monetary easing and fiscal expansion, fueling asset inflation across Bitcoin and equities.

• Despite short-term volatility — including Bitcoin’s recent 4% drop to $123,000 — Hayes believes liquidity will continue driving risk assets higher.

Arthur Hayes: “Liquidity Is the Only Game in Town”

BitMEX co-founder Arthur Hayes believes the current crypto uptrend is far from over, forecasting that sustained money printing and liquidity expansion by global central banks will push the digital asset cycle well into 2026.

In his latest blog post, titled “Max Brrr,” Hayes argues that central banks are effectively committed to perpetual stimulus to prevent financial dislocation — a backdrop that continues to support Bitcoin, Ethereum, and other risk assets.

“The world’s financial system can no longer function without constant liquidity,” Hayes wrote. “Every market dip is being met with a wall of new money, and crypto is the most reflexive beneficiary of that trend.”

His view comes amid a volatile week for crypto markets. Bitcoin, which hit an all-time high of $126,200 earlier this month, briefly plunged to $123,000 after a 4.2% correction on Tuesday, while Ether (ETH) and Solana (SOL) lost between 5–7%. Despite the pullback, liquidity indicators and ETF inflows remain historically strong.

Macro Forces Keep the Bull Market Alive

Hayes’ thesis centers on a global macro backdrop where monetary easing, fiscal expansion, and debt monetization have become structural features of modern economies. Central banks, he says, are now prioritizing financial stability over inflation control.

“The U.S. Treasury and the Federal Reserve are effectively working hand in hand,” Hayes wrote. “They’re buying time — and printing money — to sustain a debt-fueled system.”

Recent data supports that narrative. The U.S. Federal Reserve’s balance sheet has expanded by $180 billion since July, while Japan and China have injected a combined $220 billion in liquidity through bond purchases and credit facilities.

For Hayes, this confluence of easy money policies and market psychology creates the “perfect setup” for a prolonged speculative phase in digital assets, extending beyond the typical four-year halving cycle that usually governs Bitcoin’s rhythm.

“Cycles no longer end when miners or traders capitulate — they end when liquidity dries up,” he noted. “And right now, liquidity is abundant.”

Short-Term Risks, Long-Term Conviction

Still, the BitMEX co-founder cautioned that volatility will remain elevated, especially as traders attempt to front-run institutional flows. Bitcoin’s latest drop to near $122,000 triggered a round of leveraged liquidations on major exchanges, prompting speculation that “predatory” short-term traders were squeezing long positions.

“Volatility clusters at the top,” Hayes wrote, echoing his belief that major corrections during bull runs are a feature, not a flaw.

Analysts from QCP Capital and SignalPlus share a similar outlook, noting that the spot ETF market continues to act as a structural demand base, with inflows of over $3 billion last week alone. Exchange balances are near a six-year low, with only 2.83 million BTC held on trading platforms — evidence of ongoing accumulation by institutions and long-term holders.

Liquidity and Psychology: The New Market Engine

Beyond policy and price, Hayes points to a psychological dynamic among investors: “liquidity addiction.” As central banks intervene more aggressively, market participants have come to expect stimulus as a baseline condition.

“This is a generation of investors trained to buy the dip — and central banks are reinforcing that behavior,” Hayes argued.

Market observers suggest that if Hayes’ thesis holds, Bitcoin could test the $140,000–$150,000 range in early 2026, barring any major policy shocks or liquidity crunches.

The Road Ahead: 2026 and Beyond

For now, traders remain caught between monetary optimism and market fragility. If liquidity continues to expand, the current bull phase could indeed outlast previous cycles, validating Hayes’ thesis.

But should inflation resurface or central banks reverse course, crypto markets could face a sharp repricing. Until then, as Hayes puts it, “money printing is destiny — and Bitcoin is its mirror.”