Arthur Hayes: The inflow of funds into ETFs and DAT has ended; if liquidity cannot cover Bitcoin, it must fall.

According to Mars Finance, BitMEX co-founder Arthur Hayes recently wrote that while ETF inflows and DAT purchases enabled Bitcoin to rise since the contraction of dollar liquidity on April 9th, this situation has now ended. This momentum is insufficient to sustain institutional investor purchases of ETFs, and with most DATs trading below their mNAV, investors are also beginning to avoid these Bitcoin derivative securities. If these flows cannot mask the negative liquidity, Bitcoin must fall to reflect current short-term concerns that dollar liquidity will contract or fail to grow as rapidly as politicians have promised.