The digital asset market is predominantly showing a drawdown this morning. All top coins by market capitalisation with the exception of Stablecoin have issued a collapse on the scale of the last week and overnight.

Polygon MATIC has seen the most noticeable decline in value over the past seven days. At the same time, almost all altcoins have fallen by more than ten percent in seven days, generally characterizing a correction after a tangible rise a few weeks earlier.

What will happen to the dollar

Hayes’ publication is called Exit Liquidity, a definition of transaction volume used by large market players to finalise the sale of their assets. Among cryptocurrency fans, such “liquidity” is often referred to as novice investors who buy coins near their local or global highs in value. In this way, they help more experienced traders exit a position, which is exactly what gives them “liquidity to exit”.

Hayes believes that the dollar’s dominance in the world is supported by an open US capital account and a commitment to free trade. Each of these factors creates additional demand for the currency, as the former allows Asian countries to buy US assets with dollars and the latter allows Americans to buy cheap Asian goods.

However, the role of issuer of the world’s reserve currency also means that the Federal Reserve and Treasury are responsible for maintaining the global economy. In other words, when the world economy demands more dollars, the US must provide them – even if it causes inflationary pressure on its domestic economy. Here is a relevant rejoinder from Hayes, in which he shares a vision of what is happening.

Asia’s trillions of dollars of wealth also depend on the favour of US politicians. As the Russian Federation has recently learnt, the rule of law and property rights are not ironclad.

In the last few months several global trading giants have signalled their interest in moving away from dollar payments. Last month, for example, Chinese and French energy companies agreed a deal to sell liquefied natural gas in Chinese yuan rather than US dollars. Brazil and China have also entered into an agreement to trade using their national currencies.

It is fair to say that talk of the dollar allegedly finally losing its role as the main fiat currency has been going on regularly for several years, with nothing of the sort happening. In addition, it is important to understand that the potential replacement of the global reserve currency by the same yuan requires unprecedented demand for this currency, and this will not happen in the Western countries, which still have the most advanced and large-scale financial markets.

According to CryptoPotato’s sources, so far other nations are heavily dependent on the dollar and are trying to find their own alternatives to the global currency. Obviously, this is not a sign of “total failure” of the dollar, but its status as the key unit of account in the world one way or another began to be questioned. Analysts suggest that possible fiat currency “wars” and confusion in the traditional realm of economics could contribute to a surge in Bitcoin acceptance.

Hayes believes there will be several currency blocs in the future, but no currency “hegemon” like the US dollar is today. The imbalance between the blocks will be resolved in a “neutral reserve currency” similar to gold or cryptocurrencies. The bottom line is that crypto and gold are not tied to any one country. Here’s a quote from a former BitMEX CEO on the subject.

As Bitcoin continues to prove its status as a safe asset, I expect more and more countries to at least start considering it as a suitable savings vehicle alongside gold.

In the short term, however, Bitcoin has not proved to be the best investment when you consider its price movements over the past few days. In particular, the value of BTC has collapsed by more than 12 percent since April 14.

If Bitcoin’s price doesn’t rise before the end of the month, it will be the third consecutive red April since 2021. That said, it’s fair to say that BTC has already managed to post more than 70 per cent gains since the first of January.

It’s not all bad, though – a popular trader nicknamed Credible Crypto said so on Twitter. Here’s his view of the future scenario of the coin market, as cited by Cointelegraph.

If your opinion of Bitcoin has changed because of a $2,000 pullback after a vertical rally of more than $10,000 from $19,000 to $30,000, you’re doing something wrong.

Other analysts are inclined to believe that the area around $25,000 on the Bitcoin chart will be a desirable place for most traders to open long positions. Accordingly, counting on a larger drop is like expecting BTC at $10,000 in November 2022, when the cryptocurrency was at $16-17,000.

Either way, the likelihood of Bitcoin updating a new yearly high remains high for the near term. We can assume that the US Federal Reserve’s decision on the benchmark lending rate in May will also play a major role in the new round of rally. If the agency decides to suspend the permanent rate hike, the markets will likely react with a rise. However, at the moment the market expects a 25 basis point hike. The probability of such an event is estimated at 86 percent.


We believe that possible disruptions in the world of traditional finance could indeed be a catalyst for Bitcoin and other cryptocurrencies to grow in popularity. After all, as the events of March 2023 showed, the small banking crisis in the US was indeed accompanied by a serious rise in the value of digital assets. Which means in another negative situation, crypto could also be a lifeline for many investors and capital owners in general.


Stay tuned for more developments in our cryptochat of ex-wealthy people. There we await the onset of a new bullrun.