BitMEX co-founder Arthur Hayes believes one catalyst may re-ignite bullish momentum for the cryptocurrency market.
Hayes tells his 502,700 followers on the social media platform X that extra liquidity may quickly flood the markets, boosting risk-on property like crypto.
He’s referring to the anticipated Could 1st quarterly refinancing announcement (QRA) from U.S. Treasury Secretary Janet Yellen. Hayes particulars some doable fiscal selections Yellen may make that he believes would re-accelerate the crypto market.
“As anticipated tax receipts added roughly $200 billion to U.S. Treasury Normal Account (TGA). Neglect in regards to the Could Fed assembly the 2Q 2024. Refunding announcement comes out subsequent week. What video games will Yellen play, listed here are some choices:
1. Cease issuing treasuries by working down the TGA to zero, that may be a $1 trillion injection of liquidity.
2. Shift extra borrowing to T-bills, which removes cash from RRP (reverse repurchase settlement), that may be a $400 billion injection of liquidity.
3. Combo of 1 and a couple of, difficulty no long run bonds, solely payments and run down TGA and RRP on the identical time, that may be a $1.4 trillion injection of liquidity.
Hayes then says that The Fed is irrelevant and that buyers can anticipate a inventory and crypto rally if any of the three situations happen.
Do not Miss a Beat – Subscribe to get e-mail alerts delivered on to your inbox
Verify Worth Motion
Comply with us on X, Facebook and Telegram
Surf The Every day Hodl Combine
Generated Picture: Midjourney