Bitcoin’s Next Rally Won’t Depend on CLARITY Act, Arthur Hayes Argues

BitMEX co-founder Arthur Hayes has dismissed the CLARITY Act’s importance to Bitcoin’s next major rally, arguing that liquidity and broader macroeconomic conditions will matter far more than new U.S. crypto legislation.

Speaking recently on the Altcoin Daily YouTube channel, Hayes said Bitcoin does not need the proposed legislation to rise, pointing instead to growing concerns about U.S. government debt, Treasury markets, and potential monetary easing.

“Bitcoin didn’t need the Clarity Act from 2009 into the present, doesn’t need it till till the future,” Hayes said.

Meanwhile, debate over the CLARITY Act continues among cryptocurrency investors and industry participants. Hayes takes a particularly skeptical view of the legislation, arguing that its significance to Bitcoin’s price has been overstated.

“That’s what Bitcoin needs. Doesn’t need a Clarity Act to go up,” he added.

Hayes believes Bitcoin’s next significant move could be driven by increasing liquidity in global financial markets.

He linked the cryptocurrency’s long-term appeal to concerns over the sustainability of U.S. government debt. According to the executive, investors could increasingly seek scarce assets if policymakers respond to pressure in the Treasury market by injecting more money into the financial system.

“It means more liquidity. More units of fiat chasing a finite amount of goods,” Hayes explained.

In his view, Bitcoin is one of those scarce assets that could benefit from such an environment. He argued that the cryptocurrency’s role as a potential store of value becomes more relevant when confidence in traditional government debt weakens.

Additionally, he suggested that measures designed to stabilize the Treasury market could ultimately create conditions favorable for Bitcoin. He pointed to the possibility of additional Federal Reserve support and eventually greater monetary expansion.

The co-founder remains highly bullish on Bitcoin’s longer-term prospects. He said that if policymakers move toward mechanisms that significantly expand liquidity, Bitcoin could accelerate sharply.

“Oh, the Treasury yield got the 10-year got to like 4.75, looking like it’s going to go to five, and if maybe in a few weeks that obviously spooked them, and all of a sudden they roll out, ‘Oh, we’re doubling this like Operation Twist.’”

Notably, he identified $60,000, $100,000 and Bitcoin’s previous all-time high as important price levels, although he emphasized that he does not rely heavily on technical analysis.

Instead, Hayes said his investment approach centers on the broader macroeconomic narrative and liquidity conditions.

“The market is here to take your money. It is not here to make you money,” he cautioned.

That said, while legislation may influence the operating environment for crypto businesses, Bitcoin’s next major price cycle could depend more on monetary policy, liquidity and investor demand for scarce assets.

At press time, BTC was trading at $75,768, down 1.46% over the past 24 hours.