BitMEX co-founder Arthur Hayes believes one catalyst might re-ignite bullish momentum for the cryptocurrency market.
Hayes tells his 502,700 followers on the social media platform X that extra liquidity might 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 choices Yellen might make that he believes would re-accelerate the crypto market.
“As anticipated tax receipts added roughly $200 billion to U.S. Treasury Common Account (TGA). Neglect concerning the Could Fed assembly the 2Q 2024. Refunding announcement comes out subsequent week. What video games will Yellen play, listed below are some choices:
1. Cease issuing treasuries by operating 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, situation no long run bonds, solely payments and run down TGA and RRP on the similar time, that may be a $1.4 trillion injection of liquidity.
Hayes then says that The Fed is irrelevant and that traders can count on a inventory and crypto rally if any of the three situations happen.
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